Cash-strapped Bed Bath & Beyond store has received a lifeline of $120 million from Restore Capital to address its ongoing problem of empty shelves and to attract shoppers/customers back to its stores.
Bed Bath & Beyond Secures $120 Million Lifeline
ReStore Capital will invest up to $120m to purchase merchandise from Bed Bath & Beyond’s major suppliers. The aim is to enable the retailer to increase its inventory of the top items that customers are buying and improve the customer experience.
“The retailer is receiving support from its top supplier partners, which demonstrates the staying power of its brands and the potential for sustainable improvement”, Gove said in her statement. Bed Bath & Beyond’s CEO Sue Gove further added that the performance and value of the business today is not representative of its full potential.
Why Bed Bath & Beyond is Struggling?
Bed Bath & Beyond has faced a decline in sales and mounting losses, one of the main reasons behind the company’s inability to buy inventory for restocking because of which the company had empty shelves is that the company has been unable to purchase inventory because of a lack of funds, which has affected its efforts to restock and improve its merchandise assortment.
Uncertain Future of Bed Bath & Beyond
While the $120 million financial assistance from Restore Capital is a step in the right direction, it may not be enough to save the company from bankruptcy. Bed Bath & Beyond has announced its plans to raise $300 million by selling its stock to avoid bankruptcy. The company stated that if they failed to sell the targeted amount of stock, it would most likely lead to bankruptcy protection. The proceeds from the stock sale would help the company pay off its debts, which it is currently unable to afford.
Why is Bed Bath and Beyond out of stock of everything?
Payment delays to the suppliers led to supply chain issues which final led to almost zero inventory.
Why did Bed Bath and Beyond go down?
Bed Bath & Beyond inability to buy inventory for restocking led to empty shelves and eventually decline of the company.
What is the Lawsuit filed against bed bath beyond?
There is also a suit which claim that Cohen and Arnal were working together and conspired to inflate Bed Bath & Beyond’s stock for a profit.
Who is Bed Bath and Beyond biggest competitor?
The competitors of Bed Bath and Beyond are Target, IKEA, Walmart, Kohls, Wayfair and more.
