Can Bed Bath & Beyond survive the 'retail apocalypse'?
Shares of Bed Bath & Beyond gained 8% in Wednesday's session after it announced it was getting rid of non-core assets, including its Christmas Tree Shops retail brand, its Linen Holdings unit, and a New Jersey distribution center, which should bring in $250 million. Yahoo Finance Editor-at-Large Brian Sozzi joins The Final Round to discuss what the move means for the specialty retailer.
Video Transcript
- This is also a pre-pandemic issue. But nailing coffin or getting out of coffin, what is this news today?
BRIAN SOZZI: Jen, I remember back in the days when we were in the studio. And I was sitting next to you absolutely ripping Bed Bath and Beyond to shreds. Their prior management team was god awful. They were horrible, horrible. No idea even how they held their gigs for so long.
That's not the case right now. And this morning, I talked again to Bed, Bath and Beyond new CEO, Mark Tritton-- I guess he's still new. He started November 4th, 2019. The stock is up 80%. He tells me, get ready for a pretty big October 28th investor day.
They're gaining a lot of steam. I think, come that investor day, you'll see his true vision for the company. A lot more private-label brands, a smaller store base, stores that are easier to shop. Right now, pretty much throughout this year, all he's been doing is selling assets. This company now will enter the holiday season with close to 2 and 1/2 billion dollars in total equity. That is a huge war chest to try to save this company.
- Brian Sozzi, so great to see you. I feel like we're going to have some other retailers selling off things too. I mean, not, like, tomorrow, but soon. And we'll have you back. And we'll talk more then.
BRIAN SOZZI: Stay strong.
