Who Wins As Bed Bath And Beyond Loses? Competitors Waiting In The Wings

  • Oppenheimer analyst Brian Nagel has put forward his view on Bed Bath & Beyond Inc BBBY Chapter 11 bankruptcy filing.
  • The analyst said the company’s comments suggest that if a buyer of the company does not emerge, management plans to gradually wind down operations.
  • The analyst is actually hard-pressed to envision a buyer stepping up to save the chain.
  • Bed Bath & Beyond raked in total revenue of about $5.4 billion in FY22.
  • The company currently operates 360 Bed Bath & Beyond stores and 120 buybuy BABY units.
  • Since the company has been struggling for some time, news of the bankruptcy and likely liquidation should not surprise investors.
  • However, the analyst expects certain chains to capitalize a little on a market share shift away from BBBY, including Williams-Sonoma Inc WSMLovesac Co LOVE and Wayfair Inc W that are within the consumer group.
  • The closure of BBBY stores should further weaken an already upended retail real estate backdrop, providing growth opportunities for still expanding chains such as Five Below Inc FIVE.
  • The analyst believes that a reluctance of the part of former senior leadership to embrace earlier the potential benefits of ecommerce and invest in digital technologies has undermined Bed Bath & Beyond’s competitive standing.
  • Price Action: BBBY shares are trading lower by 38.8% at $0.1796 on the last check Monday.
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