Remember when woke Bed Bath And Beyond decided to dump all of the My Pillow products? They did this for virtue signaling. Since then the company has gone downhill fast.
It is now almost a certainty that they will be declaring bankruptcy sooner than later. Many suppliers have quit shipping to BB&B due to the fact that they are not getting paid and the amount of stock on hand has dwindled considerably.
The3 sales figures are dropping like a lead balloon and there is little hope they can survive. They reported sales of $1.259 billion, down from $1.878 billion in the same time period a year ago. They cite less customer traffic and lower inventory on hand as the main factors in their demise.
Customers are staying away in droves because of the lack of inventory. They desperately need a large loan, but I can’t see anyone making them an offer. That would be like selling a life insurance policy to someone on life support.
The company said in its statement Thursday that utilizing bankruptcy was on the table:
“The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code. These measures may not be successful.”
VISIT OUR YOUTUBE CHANNELThe time span included the lead-up to Black Friday, The New York Times reported, which is a bad sign for a company that relies on the holidays.
The company also said it is set to have a net loss of around $385.8 million for the third quarter of this fiscal year, “including impairment charges of approximately $100.0 million.” The net loss is an increase from $276.4 million in the same time span last year.
The Wall Street Journal reported that sources said the company is already in the early phase of getting ready to file for a chapter 11 bankruptcy, and talks could go into February.
“The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code. These measures may not be successful,” it noted.
The Journal added that the company’s stock closed out down 30% on Thursday. The sources also told the outlet that creditors the company already has will probably provide it with the money to get it through the bankruptcy procedure.
CEO and President Sue Gove said in the statement Thursday:
“Strengthening our ability to serve our customers will continue to drive our decision-making. We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference. We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals. We look forward to providing an update on these fronts on our formal third quarter earnings call next week.”
The company is carrying $1.2 billion in debt. Dropping My Pillow may not be the only thing troubling BB&B, but it is a factor. Meanwhile, My Pillow has dropped its prices to customers to the level they sell to retail customers and they are making millions. I have 4 king-size pillows, two sets of sheets, and four sets of towels. They are great products and I am happier than a blind hog that finds a pile of acorns.
