Bed Bath & Beyond is a home goods staple in California and throughout the country. Unfortunately, the retailer has been struggling for the past three years. Now, the company is considering filing for bankruptcy and plans to close multiple stores.
Dire situation for the retailer
Bed Bath & Beyond has determined that it may have to file for business bankruptcy to keep afloat among poor sales and earnings results. Sales have significantly declined as customers have spent their money elsewhere. The company is also having trouble keeping goods in stock as it faces financial difficulties and trouble retaining a good relationship with its suppliers.
In midst of all these problems, the retailer has announced multiple store closings in California and other states. Customers have also turned to online retailers like Amazon for home goods or simply choose to keep their older household items longer. Threats of a recession don’t help its cause, either.
While the retailer continues to lose money, it plans to close California brick-and-mortar stores in Antioch, Buena Park, Chula Vista, La Habra, Sacramento, San Jose, Valencia and Vallejo.
Plans for a comeback
Bed Bath & Beyond is hoping to make a comeback after closing around 150 stores and cutting its employees by around 20%. It plans to phase out some of its own brands and replace them with other well-known names to drive customer interest. Another thing it plans on doing is adding merchandise in a direct-to-consumer manner to allow the retailer to better compete against other stores that already offer that option.
As of the third quarter of 2022, the retailer had a net loss of nearly $386 million. A spokesperson said that low inventory was partly to blame.
The company acknowledges that its efforts to regroup might not work. However, it has hopes to avoid going under like many other retailers before.