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Bed Bath & Beyond Could Go Bankrupt – Darlinez News

<p>&lbrack;ad&lowbar;1&rsqb;<&sol;p>&NewLine;<div>&NewLine;<p>Retailer Bed Bath &amp&semi; Beyond Inc&period; &lpar;NASDAQ&colon; BBBY&rpar; has been staggered by poor management&comma; poor inventory control&comma; lack of store upgrades and overwhelming competition&period; It has been one of America’s most troubled retailers for the past two years&period; CNN Business analysts believe the difficulties are so severe that Bed Bath &amp&semi; Beyond belongs on a list of store chains that could go bankrupt&period; The conclusion was based on credit agency reports and the chance the economy could continue its downturn&period;<&sol;p>&NewLine;<p>One group that CNN Business consulted for its conclusions about dying retailers was an analyst team at Morgan Stanley&period; They commented&colon; &OpenCurlyDoubleQuote;We believe many will turn to aggressive discounting to solve their inventory problem&comma; which is likely to spark a &OpenCurlyQuote;race to the bottom&period;&&num;8217&semi;”<&sol;p>&NewLine;<p>There is no reason to go beyond the company’s stock price to prove the pessimism about its future&period; Shares have dropped 64&percnt; this year to &dollar;5&period; The stock traded for &dollar;50 a share less than two years ago&period;<&sol;p>&NewLine;<p>Bed Bath &amp&semi; Beyond might have already run out of money&comma; but it raised over &dollar;1 billion in August&period; As part of the process&comma; it laid off corporate staff and said it would shut down about 150 stores&period; Sue Grove&comma; the interim chief executive officer&comma; made the announcement&period; The company does not have a seasoned&comma; permanent team to guide it through the most difficult period in its history&period;<&sol;p>&NewLine;<p>Bed Bath &amp&semi; Beyond’s nosedive has been remarkably swift&period; In the quarter that ended August 27&comma; revenue dropped 28&percnt; to &dollar;1&period;4  billion&period; The company lost &dollar;366 million&period;<&sol;p>&NewLine;<p>One fairly constant rule about the retail industry is that companies cannot cut their way to profitability&period; It has been tried and has failed in recent decades&period; The best-known wrecks that went through this process are J&period;C&period; Penney&comma; Sears and Kmart&period;<&sol;p>&NewLine;<section id&equals;"email-subscribe" class&equals;"section section-email-sub single-email-sub"><&excl;-- div&period;svg-icon --><&sol;p>&NewLine;<div class&equals;"container">&NewLine;<div class&equals;"subscribe-message" style&equals;"line-height&colon; 1&period;3&semi;">&NewLine;<p>Get Our Free Investment Newsletter<&sol;p>&NewLine;<&sol;div>&NewLine;<&sol;div>&NewLine;<&sol;section>&NewLine;<p>Among Bed Bath &amp&semi; Beyond’s highest hurdles is that its household appliances&comma; furniture and accessories face similar products sold by Walmart&comma; Amazon and Target&period; Those are the three largest competitors&comma; but the full list is much longer&period;<&sol;p>&NewLine;<p>Bed Bath &amp&semi; Beyond has three months to save itself&period; By early January&comma; it can determine how well or poorly its critical holiday sales period has performed&period; If the results are anything less than strong&comma; the company is done for&period;<&sol;p>&NewLine;<div id&equals;"smartasset" style&equals;"margin-bottom&colon; 1em&semi; margin-top&colon; 1em&semi;">&NewLine;<p><b>Sponsored&colon; Tips for Investing<&sol;b><&sol;p>&NewLine;<p>A financial advisor can help you understand the advantages and disadvantages of investment properties&period; Finding a qualified financial advisor doesn’t have to be hard&period; SmartAsset’s free tool matches you with up to three financial advisors who serve your area&comma; and you can interview your advisor matches at no cost to decide which one is right for you&period; If you’re ready to find an advisor who can help you achieve your financial goals&comma; get started now&period;<&sol;p>&NewLine;<p>Investing in real estate can diversify your portfolio&period; But expanding your horizons may add additional costs&period; If you’re an investor looking to minimize expenses&comma; consider checking out online brokerages&period; They often offer low investment fees&comma; helping you maximize your profit&period;<&sol;p>&NewLine;<&sol;div>&NewLine;<p><&excl;-- &num;post-footer--><&sol;p>&NewLine;<&sol;div>&NewLine;

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