DISTRESSED DAILY: Bed Bath’s Turnaround Will Burn Up Some Cash

May 20, 2022, 1:37 PM

Some of Bed Bath & Beyond Inc.‘s bonds have tumbled to less than half their face valuea level that implies something dire and imminent for the home goods retailer.

That’s not how Moody’s Investors Service sees the situation, but the credit-rating firm warns that Bed Bath faces increasing risks for its turnaround strategy, and it’s probably headed for negative cash flow this year.

Bed Bath posted a surprise quarterly loss last month, hobbled by inflation that cut into shoppers’ disposable income and supply chain disruptions that boosted its own costs and crimped inventory. This prompted a downgrade…

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