Quarterly loss, plunge in sales, mass layoffs and struggle to keep afloat during bankruptcy filing are raising the difficulties for brand Bed Bath & Beyond.
According to reports, Bed Bath & Beyond Inc., has been in contact with potential lenders and buyers as the struggling retailer tries to avoid declaring bankruptcy by keeping its operations afloat. The company is also currently seeking a buyer to continue operating the business through a sale process.
Reports about its loan of US $ 100 million ahead of potential bankruptcy have also been the talk of the town. In the first nine months of the fiscal year, the company has reported net losses exceeding US $ 1.12 billion with its liquidity blown in recent months and a strained relationship with its suppliers.
The brand has denied spilling the beans on the context. Companies such as Authentic Brand- Owner of Forever 21, Aeropostale and Sycamore seem to be looking into the matter of tapping Bed Bath & Beyond and Sycamore seems to be additionally interested in buying its baby chain Buybuy Baby.
“Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner,” the spokeswoman said, declining to comment further.
Additionally, an internal email circulated by CEO Sue Gove said the company is reducing its workforce ‘across our corporate, supply chain and store portfolio’. She did not say how many employees would be affected, but said it is necessary to ensure Bed Bath’s future.” While we have taken several important initial steps in our turnaround plan with strong execution, our Q3 2022 results signal that it will take longer to translate actions into outcomes,” she wrote.