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Bed Bath & Beyond warns it can’t pay down debts, defaults on credit line



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Signage is seen through an overturned shopping cart outside a Bed Bath & Beyond Inc. store in Greendale, Wisconsin.Daniel Acker | Bloomberg | Getty ImagesBed Bath & Beyond said Thursday it doesn’t have enough cash to pay down its debts and it has defaulted on its credit line with JPMorgan, warning once again of a potential bankruptcy.Shares of Bed Bath plunged Thursday afternoon, prompting brief trading halts. The stock closed 22% down with a market cap of about $295 million.In a securities filing, the struggling home goods retailer said it “does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the Company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.”Bed Bath is attempting to cut costs by lowering capital expenditures, closing stores and negotiating lease deals with its landlords but warned “these measures may not be successful.”The latest filing is another sign that time is running out for Bed Bath, as sales lag and debts pile up for the cash-strapped retailer. It comes at a time that inflation is weighing on consumers’ wallets and shoppers put their discretionary dollars towards experiences, like dining out or booking trips, over home goods.Amid tough macro challenges, Bed Bath’s vendors tightened their credit terms and cut limits …

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