Bed Bath & Beyond makes desperate move while teetering toward bankruptcy
Bed Bath & Beyond is cleaving off an arm in an effort to conserve cash in what could be its final hours.
A source told Yahoo Finance the company informed workers on Thursday that all of its Harmon brand stores would be closed as the embattled retailer continues on its downward trend.
Harmon — which mostly focuses on the sale of beauty products — operated about 52 stores in six states, according to the company's most recent annual report. A store employee at at NYC location told Yahoo Finance they were informed of their store closing this week.
After publication, Bed Bath & Beyond Spokeswoman Julie Strider responded to a request for comment and confirmed the Harmon closures to Yahoo Finance.
"As we consider all paths and strategic alternatives, we continue to work with our advisors and implement actions to manage our business as efficiently as possible," Bed Bath & Beyond spokeswoman Julie Strider told Yahoo Finance in a statement, later adding: "We will update all stakeholders on our plans as they develop and finalize."
The Harmon move comes as Bloomberg reports that the company has been unable to find a buyer in bankruptcy so far — meaning that it could potentially file for Chapter 11 bankruptcy protection without a bidder for its assets.
By the end of 2022, Bed Bath & Beyond stacked up more than $1 billion in debt and losses. Rumors of bankruptcy began circling the company, particularly after a warning in a recent regulatory filing that it may seek those protections in the near future.
The filing also revealed that Bed Bath & Beyond has defaulted on its loans following a notice from JP Morgan and is unable to come up with the funds to repay its debt.
Bed Bath & Beyond stock has been struggling since the meme stock craze in early 2021 that sent its price as high as $27.23 a share before eventually losing those gains. The company announced in September 2022 that it would be closing 150 stores across the U.S.
This post was updated with confirmation from Bed Bath & Beyond.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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