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.”
Source: WSJ
Omni Talk is the retail blog for retailers, written by retailers. Chris Walton and Anne Mezzenga founded Omni Talk in 2017 and have quickly turned it into one of the fastest growing blogs in retail. 