Bed Bath & Beyond advised Nexstar Monday that it will likely be closing 87 additional stores, an announcement that comes days after the beleaguered residence items chain mentioned it had defaulted on its loans.
The firm additionally plans to close 5 buybuy BABY stores in addition to all of its Harmon magnificence places.
Bed Bath & Beyond mentioned the closures are being performed to improve effectivity as the corporate works with advisors to “take into account a number of paths” because the retailer tries to flip the enterprise round.
Impacted retailer places weren’t instantly accessible Monday.
“This retailer fleet discount expands the Company’s ongoing closure program of roughly 150 lower-producing Bed Bath & Beyond banner stores,” a spokesperson advised Nexstar. “We will replace all stakeholders on our plans as they develop and finalize.”
Last Thursday, Bed Bath & Beyond mentioned in a Securities and Exchange Commission filing that it had defaulted on its loans, which can power it to take into account restructuring its debt in chapter court docket.
The submitting included a number of the different methods Bed Bath & Beyond is using to enhance its monetary place, resembling reducing prices, trimming capital expenditures, attempting to rework rental offers with landlords and decreasing the footprint of its stores, in addition to the caveat that “these measures is probably not profitable.”
Bed Bath & Beyond warned on Jan. 5 that it was considering options including filing for bankruptcy, saying that there was “substantial doubt” that it may keep in enterprise. Per week later, it reported a 33% drop in sales and a widening loss for its fiscal third quarter that ended Nov. 26, in contrast with the year-ago interval. Sales at stores opened at the least a 12 months — a key indicator of an organization’s well being — dropped 32%.
Its just lately appointed president and CEO, Sue Gove, blamed the poor vacation efficiency on stock constraints and decreased credit score limits that resulted in shortages of merchandise on retailer cabinets.
Typically, struggling retailers file for chapter safety after the vacation purchasing season as a result of they’ve a money cushion coming from the two-month gross sales interval.
Still, turning round Bed Bath & Beyond is predicted to be tough amid rising competitors from discounters. Its struggles come because the financial system is weakening, and consumers are tightening their purse strings.
The Associated Press contributed to this report.
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