Bed Bath & Beyond: Dying?

Romr123
Assistant Store Manager
Assistant Store Manager
Posts: 693
Joined: February 1st, 2021, 4:26 pm
Has thanked: 37 times
Been thanked: 56 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by Romr123 »

Just made a Black Friday order from them (some of their promoted items and some random clearance stuff). Picked up what I could at Beverly Hills, MI (stand-alone store, weirdly laid out with the narrow side to the road and the entrance waaaay in back, liable to be a pretty high volume/high income store) Sunday after Thanksgiving. Some store traffic but really not holiday-weekend levels. Very good service from the pickup associate--nice experience, overall. Several of the random clearance stuff items have come back "unavailable"; a sheet set was fulfilled from their Traverse City store.
buckguy
Store Manager
Store Manager
Posts: 1003
Joined: January 31st, 2017, 10:54 am
Has thanked: 3 times
Been thanked: 61 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by buckguy »

The list of closings is disproportionately in smaller markets---including places where I wouldn't have expected to have stores like Green Bay. There are some interesting exceptions like Vernon Hills and Deerfield, both outside of Chicago and not terribly far from each other and some prime retail locations like Strongsville, Ohio where they are in a busy big box area.

They seem less desperate than last year with the volume of their promotions. I wonder if this is a change in strategy or a lack of resources.
Romr123
Assistant Store Manager
Assistant Store Manager
Posts: 693
Joined: February 1st, 2021, 4:26 pm
Has thanked: 37 times
Been thanked: 56 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by Romr123 »

If they were going to be the "back to college" and "live-love-laugh" crap and "national upscale wedding registry" store, they needed to be in some of those smaller towns, but if they're shredding that notion the further-flung stores probably aren't pulling their weight.
ClownLoach
Valued Contributor
Valued Contributor
Posts: 2689
Joined: April 4th, 2016, 10:55 pm
Has thanked: 39 times
Been thanked: 288 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by ClownLoach »

Is it mean spirited to take bets on what day the bankruptcy filing happens?

I bet a dollar on Monday, January 9th, 2023. A safe distance from the holiday break.

Gives them enough time to get the bankruptcy court approval for handing a huge wave of stores to the liquidators as part of the filing, and by doing it Monday afternoon the liquidators will have enough time to get the signs printed, banners ordered, and boots on the ground to start the closing sales by Friday going into the 3 day MLK weekend.

Of course it will be a futile exercise and the whole thing will wind up converting to a Chapter 7 bankruptcy auction in which the vultures of the world (Hilco, Great American, Gordon Bros etc) will make the stalking horse bid and take them to their grave a couple months later.

Sad but I've seen this show before and I know how it ends.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by storewanderer »

ClownLoach wrote: December 7th, 2022, 9:44 pm Is it mean spirited to take bets on what day the bankruptcy filing happens?

I bet a dollar on Monday, January 9th, 2023. A safe distance from the holiday break.

Gives them enough time to get the bankruptcy court approval for handing a huge wave of stores to the liquidators as part of the filing, and by doing it Monday afternoon the liquidators will have enough time to get the signs printed, banners ordered, and boots on the ground to start the closing sales by Friday going into the 3 day MLK weekend.

Of course it will be a futile exercise and the whole thing will wind up converting to a Chapter 7 bankruptcy auction in which the vultures of the world (Hilco, Great American, Gordon Bros etc) will make the stalking horse bid and take them to their grave a couple months later.

Sad but I've seen this show before and I know how it ends.
I think the Round 1 Stores need to get closed up first. They are reportedly being told they will be closing in January, but not clear when in January. They are continuing to receive merchandise until further notice yet at one point were told they would be closed by Halloween. $800 strollers, pallets and pallets of the things, will not sell in Sparks, NV until they are 90% off, showed up late last week. Even then it will be a hard sell; that type of stuff is what was left on the last day of Babies R Us in Reno.

I think they are trying to draw out these closing sales as long as possible in a Sears-like fashion and see if somehow long closing sales can be a lifeline for them. I have bad news, that strategy won't work.

The question of a bankruptcy filing is the conditions that necessitate such a filing to take place. Do they even have until January 9? I guess it depends how their holiday sales go. My guess is this Round 2 of closures being announced a couple weeks before Christmas is a cash grab in hopes they can raise proceeds from those liquidation sales to string things out longer. I suspect they are in a position where they either had to announce more closures to quickly monetize inventory, or else be out of cash to continue with any day now.
ClownLoach
Valued Contributor
Valued Contributor
Posts: 2689
Joined: April 4th, 2016, 10:55 pm
Has thanked: 39 times
Been thanked: 288 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by ClownLoach »

storewanderer wrote: December 7th, 2022, 11:21 pm
ClownLoach wrote: December 7th, 2022, 9:44 pm Is it mean spirited to take bets on what day the bankruptcy filing happens?

I bet a dollar on Monday, January 9th, 2023. A safe distance from the holiday break.

Gives them enough time to get the bankruptcy court approval for handing a huge wave of stores to the liquidators as part of the filing, and by doing it Monday afternoon the liquidators will have enough time to get the signs printed, banners ordered, and boots on the ground to start the closing sales by Friday going into the 3 day MLK weekend.

Of course it will be a futile exercise and the whole thing will wind up converting to a Chapter 7 bankruptcy auction in which the vultures of the world (Hilco, Great American, Gordon Bros etc) will make the stalking horse bid and take them to their grave a couple months later.

Sad but I've seen this show before and I know how it ends.
I think the Round 1 Stores need to get closed up first. They are reportedly being told they will be closing in January, but not clear when in January. They are continuing to receive merchandise until further notice yet at one point were told they would be closed by Halloween. $800 strollers, pallets and pallets of the things, will not sell in Sparks, NV until they are 90% off, showed up late last week. Even then it will be a hard sell; that type of stuff is what was left on the last day of Babies R Us in Reno.

I think they are trying to draw out these closing sales as long as possible in a Sears-like fashion and see if somehow long closing sales can be a lifeline for them. I have bad news, that strategy won't work.

The question of a bankruptcy filing is the conditions that necessitate such a filing to take place. Do they even have until January 9? I guess it depends how their holiday sales go. My guess is this Round 2 of closures being announced a couple weeks before Christmas is a cash grab in hopes they can raise proceeds from those liquidation sales to string things out longer. I suspect they are in a position where they either had to announce more closures to quickly monetize inventory, or else be out of cash to continue with any day now.
I wonder if these wave 1 and 2 closings are possibly not even approved by the landlords - and they are still open because they are required to be open and operating per their lease. That would be a good way to get some temporary operating cash while they wait to file bankruptcy in January, then they can stop paying rent (if they haven't already) and flush those leases for free. They know that the retailers who have filed bankruptcy before the holidays historically have been ignored by customers and then they miss the sales targets that are needed for an ongoing concern so they go right to the bankruptcy auction and get liquidated. Circuit City went through this - they filed Chapter 11 in November and suddenly their sales tanked because customers do not understand the meaning of bankruptcy reorganization. They think it means "hey, they're bankrupt and closing down soon so I should wait for the liquidation sale" instead of the company fixing their finances and getting rid of some problem locations/merchandise. BB&B knew that a filing before the holidays would deliver the same "kiss of death" for store traffic. But I think they might have been able to fix their finances, possibly get in with a private equity firm or some other means of survival if they filed before they spent every remaining dime they had this holiday season. Now they don't have a chance.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by storewanderer »

Went into the Reno Bed Bath and Beyond. The store appears to have been broken into so the door is boarded up. So I don't know if something happened and maybe all the good stuff got taken or what.

So Bed Bath and Beyond- this store looks like it is going out of business. Various "sections" of the store have had shelves removed and the only shelving is at the "front" of the section closest to the racetrack. The pet section is no longer pet (sign still there) and filled with UGG blankets. Over in one of the "bath" sections they've pulled the blue fabric from top of shelf all the way down to the floor over a 8 foot or so long area there due to having no products to put on the shelves. The drug/HBA department is a disaster with half of SKUs out of stock and most SKUs present in very low quantities. I did not see any new branded product, kitchen electrics area was very empty, bedding areas were very empty, lots of UGG items and private labels. Everything is poorly merchandised and looks old/sad. The store had very few customers and few employees; nobody greeted me or offered assistance.

Next door at the Cost Plus World Market it was a completely different experience. The store is very well stocked and filled up with items. But they look to be having great sell through on Christmas decor, food, etc. The store had a good number of customers shopping and I saw multiple $100+ transactions go out. It is sure great this Save Mart group bought World Market and decided to do a big inventory buy to revive it. I can only imagine the condition World Market would be in if Bed Bath and Beyond still owned it, or if it would even still be open. What is ironic is if Bed Bath and Beyond had kept World Market open during the COVID Lockdown (using the "we sell essential goods- food and liquor" card), they probably would have made so much money it would have bought the whole company a lot more time and enabled a higher sale price for World Market. Too bad.
rwsandiego
Store Manager
Store Manager
Posts: 1242
Joined: April 3rd, 2016, 10:57 pm
Has thanked: 23 times
Been thanked: 55 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by rwsandiego »

Funny you mentioned World Market. I was in the World Market in Phoenix just after BBB sold it and commented to the manager that it was starting to look like the "old" World Market again, She mentioned being very excited about upcoming changes (which have now been made) and seeing the store full of customers again. Fast-forward to a couple of months ago and the store was a complete 180 from where it was. It was back to having high-quality merchandise of a style one would expect from World Market. It was also packed. I talked to the same manager who said she was happy to come to work again. Although I wasn't super thrilled to have stood in line, it was nice not to feel like I was shopping at a ghost town.

Across the street at BBB, the store was devoid of customers. They do have merchandise, though, and it wasn't that "Out Table" (or whatever they call it) crap. They did not have what I wanted (the employee mentioned that he wished they would start carrying a better sheet-pan selection) but at least what they had was of good quality.
storewanderer
Posts: 14379
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by storewanderer »

So the store in Carson City, NV started a liquidation sale a few days ago. They went to 25% off right out of the gate. This closure was made very suddenly with little advance notice. A couple days after the closure was announced they started to flow tons of freight into this store, including a ton of ready to assemble furniture and various other items. This store is stocked much better than the (staying open for now) store in Reno is.

I did not see this store listed on any closing lists so I wonder how many other locations are closing but not on any closing lists.

This store did almost no business, its hours for months were 10am to 6pm. I am surprised it lasted this long.
ClownLoach
Valued Contributor
Valued Contributor
Posts: 2689
Joined: April 4th, 2016, 10:55 pm
Has thanked: 39 times
Been thanked: 288 times
Status: Offline

Re: Bed Bath & Beyond: Dying?

Post by ClownLoach »

storewanderer wrote: December 24th, 2022, 12:09 am So the store in Carson City, NV started a liquidation sale a few days ago. They went to 25% off right out of the gate. This closure was made very suddenly with little advance notice. A couple days after the closure was announced they started to flow tons of freight into this store, including a ton of ready to assemble furniture and various other items. This store is stocked much better than the (staying open for now) store in Reno is.

I did not see this store listed on any closing lists so I wonder how many other locations are closing but not on any closing lists.

This store did almost no business, its hours for months were 10am to 6pm. I am surprised it lasted this long.
Looks like a great way to find out is searching their store directory online. If the store isn't offering online ordering then it is closing. Found the Wave 2 stores on here like that, plus noticed a few more. Santee, CA (it's a busy area but they are in the only dead spot, they had numerous opportunities to move). Also noticed Wave 2 store La Habra, CA is already completely removed. Google shows it is already permanently closed. Lease must have been up. That store was with a good Walmart, Sam's Club, Kohl's, Lowe's, and even a surviving Staples. New Trader Joe's across the street and lots of surrounding retail. A regional destination where I'd say if you can't make it there you can't make it anywhere.

Upland, CA says "Come Check Out our Totally Redesigned Store!". Upland isn't exactly the regional retail destination I'd be looking for remodeling. These guys have no idea what they're doing.
Post Reply