Bed Bath & Beyond Inc., which this week ousted its chief executive and revealed deep losses, faces not just a strategic crisis but a financial one.
The retailer ended May with roughly $100 million in cash, after burning through more than $300 million of its reserves and borrowing $200 million from its credit line. It has already sold off real estate to raise funds. Now, it is working with advisers on cash management and trying to find a buyer for its Buybuy Baby business.
“The company appears to be in a bit of a free fall operationally,” said David Silverman, a senior director at Fitch Ratings. “The liquidity concerns are quite real and will likely get worse over the next quarter or two.”WSJ