8/27/2023 0 Comments Bed bath beyond stock checkerHow many more red flags do BBBY stock investors need before they finally throw in the towel? Is It Time to Sell BBBY Stock?Ĭlearly, Bed Bath & Beyond has financial and reputational issues. It certainly sounds like vendors are hesitant to conduct business with the company. Besides, consider Bed Bath & Beyond’s reputation. Yet, Bed Bath & Beyond can’t expect financiers to keep coming to the rescue like this. The press release spins this as a positive development. To boost the retailer’s flagging inventory levels, ReStore Capital plans to buy “up to $120 million” of merchandise from Bed Bath & Beyond’s “key suppliers.” It’s a tactic that signals desperation, and should set off alarm bells for prospective investors.īed Bath & Beyond “has struggled to keep shelves stocked over the past couple of quarters.” To help remedy this problem, Bed Bath & Beyond started a “vendor consignment program” with ReStore Capital. However, the aforementioned financial issues wouldn’t be solved by a reverse stock split. In particular, the company hopes to get the shareholders’ approval to enact a reverse split of BBBY stock. Also, it’s disconcerting that Bed Bath & Beyond admitted it “will likely file for bankruptcy protection” if the company cannot receive the proceeds from a $300 million common stock offering.īed Bath & Beyond is proposing a quick fix to prevent a potential delisting. From a financial standpoint, the outlook isn’t great.Īlarmingly, Bed Bath & Beyond’s Form 10-Q (the most recently filed one, though it covers data from late 2022) points to $1.03 billion of long-term debt and $5.2 billion of long-term liabilities.īed Bath & Beyond is deeply unprofitable and has a poor quarterly earnings track record. While the company hasn’t made a formal Chapter 11 announcement, there’s been chatter about Bed Bath & Beyond possibly going bankrupt.
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