Bed Bath & Beyond warns of inability to pay debts in a regulatory filing
Yahoo Finance Live anchors discuss the road ahead for Bed Bath & Beyond as the chain warns of inability to pay debts.
Video Transcript
JULIE HYMAN: More trouble in sight for Bed, Bath & Beyond. The retailer warning in a regulatory filing yesterday that it does not have sufficient resources to pay off its debt. The stock, by the way, when it came out with this, fell yesterday sharply, but in true fashion, it's coming back today. So this is-- so basically, what happened here, it's in the filing yesterday. It got a default notice from JPMorgan Chase, which is one of its creditors. Basically, its inventory was below the amount that the company has already borrowed from its revolving credit facility. All of this, again, all signs point to Chapter 11.
BRIAN SOZZI: Julie, it's just-- there's no company left here for Bed, Bath. I drove last night. I got myself some Chinese food around, like, 7:30 or 8:00, and there was a Bed, Bath Beyond right by me, West Babylon, New York. There's nobody in there, and the shelves are completely empty. I mean, this is a company now on the verge of not going bankrupt, yes, but just going out of business. This is a classic story we saw at Sears, linens, and things so many times. It's really--
JULIE HYMAN: But this is happening more quickly, it feels like.
BRIAN SOZZI: Yeah, well, it's unlikely they're around in a year. I mean, I hate saying it. I mean, we all grew up going here, but this is what happens in retail. The strongest survive, and they're far from the strong.
[BUZZER]
BRAD SMITH: But it also goes to how many layers of management mismanaged Bed, Bath & Beyond for so long.
BRIAN SOZZI: I think the new board member-- Julie, you pointed this out-- getting a cool $30,000--
[BUZZER]
--a month.
JULIE HYMAN: We'll see if it helps.
