Bed Bath & Beyond, a brick-and-mortar retailer, is reportedly preparing to file for bankruptcy in the coming weeks. This follows a significant drop in its stock price and a warning of “substantial doubt” about the company’s ability to continue. CEO Sue Gove attributed the worse-than-expected performance to “inventory constraints” and “economic challenges”.
The firm’s stock had tripled during retail-trading mayhem during the pandemic, and billionaire Ryan Cohen had disclosed a $120 million investment in the home goods store. However, shares of Bed Bath & Beyond have since collapsed 95% from a closing high of about $35 in January 2021, and even more since its peak in 2014 when shares peaked at more than $80.
It remains to be seen if the measures being explored by Bed Bath & Beyond will be successful. In the meantime, the firm’s struggles are indicative of the challenges faced by the retail sector due to the pandemic. Moving forward, other brick-and-mortar retailers may be forced to explore similar options to stay afloat.