Bed Bath & Beyond has ‘substantial doubt’ about future, putting 7 Minnesota stores at risk

Dwelling items chain Mattress Tub & Past is going through an unsure future, placing seven Minnesota places in danger.

The chain is going through an uphill climb attributable to slower foot visitors and weaker gross sales that would lead to chapter, with the corporate saying in its newest earnings report that there’s “substantial doubt concerning the Firm’s means to proceed as a going concern.”

In a press release earlier than the inventory market opened Thursday, the corporate mentioned its third quarter internet gross sales dropped by round a 3rd in comparison with the identical interval in 2021, which included Black Friday. A complete lack of $386 million in its newest quarter was reported, in comparison with a $276 million loss final 12 months.

The corporate is looking for methods of decreasing its liabilities, which may embrace promoting a few of its properties, or looking for chapter aid.

This in flip may spell dangerous information for the corporate’s seven remaining Minnesota shops, that are in Apple Valley, Bloomington, Maple Grove, Minnetonka, Rochester, Roseville, and Woodbury.

The St. Cloud location on the Rivertown Village Procuring Middle closed on Dec. 30, an worker confirmed to Carry Me The Information on Thursday. It was named on a 2022 checklist of 150 shops the corporate meant to shut nationwide.

“Whereas the Firm continues to pursue actions and steps to enhance its money place and mitigate any potential liquidity shortfall, based mostly on recurring losses and unfavorable money circulation from operations for the 9 months ended November 26, 2022, in addition to present money and liquidity projections, the Firm has concluded that there’s substantial doubt concerning the Firm’s means to proceed as a going concern,” Mattress Tub & Past mentioned in a press release.

CEO Susan Gove mentioned among the many causes for the drop in gross sales is “stock constraints,” saying objects have not been up to date as constantly as prospects would love.

The corporate has confronted rising strain to chop prices after repeated quarters of declining gross sales in 2022. The retailer was additionally criticized for getting again almost $700 million of its personal inventory in late 2020.

In early 2020, the corporate had almost 1,500 shops working across the nation however that has since declined to round 955, of which 769 are Mattress Tub & Past. Different retailer manufacturers throughout the firm embrace Buybuy Child, Harmon, Harmon Face Values, and Face Values.

Massive department shops have struggled lately attributable to on-line procuring, the COVID-19 pandemic, and competitors from off-price retailers. BestLife experiences extra department shops may face closures in 2023, corresponding to Kohl’s and Nordstrom. 

Just lately in Minnesota, large field shops corresponding to Marshalls, Macy’s, Brooks Brothers, Saks Off Fifth and Nordstrom Rack in downtown Minneapolis have closed lately.