The retailer continues to take steps to save the business.
American company Bed Bath & Beyond has decided to close its retail chain under the Harmon brand and cut the number of its stores by 87 outlets. The latest series of closures will be another step in streamlining the business, which will involve a reduction of 150 stores.
Last week retailer defaulted on a $550 million loan. Bed Bath & Beyond's sales fell by a third last year to $1.3 billion. The company's total debt is now estimated at $2 billion.
The retailer continues to take steps to save the business, but analysts believe the company will be forced to initiate bankruptcy protection. This week, the company decided to divest its Harmon subsidiary, which specializes in selling skin care, hair care, and cosmetics and hygiene products.
Harmon joined the Bed Bath & Beyond portfolio in 2002. Today, the retailer has 50 stores, including 30 in New Jersey, 15 in New York, and several in California, Nevada, Connecticut and Florida.
Bed Bath & Beyond had 950 stores, including 760 of the eponymous brand, in 50 states as of the end of November of last year. In addition, the retailer owns 137 BuyBuy Baby stores and 50 stores under the Harmon, Harmon Face Values, or Face Value banners.
Bed Bath & Beyond still needs to file a financial report for 2022. Analysts predict the company will post a net EBITDA loss of more than $740 million. The company's liquidity is currently estimated at $500 million, and analysts expect it to run out entirely by the end of 2023. Thus, in the coming weeks, we can expect the company to file for restructuring through bankruptcy.