Bed Bath & Beyond shares sink over 40% after bankruptcy filing (updated)

Bed Bath & Beyond

24/04/2023 12:28

(Adds U.S. shares, background)
       April 24 (Reuters) - Shares of Bed Bath & Beyond Inc
 BBBY.O  plunged about 41% premarket on Monday after the home
goods retailer's long fight to save its business ended in
bankruptcy. 
    The once high-flying company filed for Chapter 11 bankruptcy
protection over the weekend and said it had launched a
liquidation sale after failing to secure the funds needed to
stay afloat. It also plans to use the Chapter 11 proceedings to
conduct a limited sale and marketing process for some or all of
its assets.     
    Frankfurt-listed shares of the company  BBBY.F  slumped 41%
on Monday. 
    Bed Bath has struggled with slumping sales and mounting
losses over the past several months after its strategy to sell
more store-branded products over national brands backfired,
while a rough economy and tight spending also walloped the
business. 
    "Bed, Bath & Beyond fell between the racks, unable to
compete with the cut-price offerings of rivals like TJ Maxx
 TJX.N  and value ranges of Target  TGT.N , and with their
products not seen as little luxuries worth paying more for,"
said Susannah Streeter, head of money and markets at Hargreaves
Lansdown.
    Still, Bed Bath's downfall is not a threat to the broader
retail sector, analysts said.  
    "Companies were conservative on '23 guidance to start the
year so the fallout from Bed Bath shouldn't result in any
company cutting guidance even after incorporating exposures to
other distressed retailers," Evercore analysts wrote in a note
on Sunday. 
    BofA analysts named Walmart Inc  WMT.N , Amazon.com Inc
 AMZN.O , Target, Wayfair  W.N  and Williams-Sonoma Inc  WSM.N 
among companies that would gain share and revenue from the Bed
Bath & Beyond wind-down. 

 (Reporting by Deborah Sophia and Bansari Mayur Kamdar in
Bengaluru and Joice Alves; Editing by Amanda Cooper and Devika
Syamnath)
 ((Joice.Alves@thomsonreuters.com; Twitter @joiceal;))