According to sources familiar with the situation, certain suppliers of Bed Bath & Beyond Inc. are limiting or stopping deliveries entirely as a result of the home goods store falling behind on payments, which is making the company’s struggle for cash more difficult.
According to the persons who requested to remain anonymous because they were discussing private information, a number of companies that offer credit insurance or short-term financing to vendors have canceled their coverage of Bed Bath & Beyond. Requests for feedback from the corporation with headquarters in Union, New Jersey, were not promptly fulfilled.
Bed Bath & Beyond Stock Continues to Fall
This week, shares of Bed Bath & Beyond (NASDAQ:BBBY) lost half of their value as a result of influential investor Ryan Cohen selling his holdings in the business. In after-hours trading on Friday, the stock continued to fall, falling 6.2% at 5:21 p.m. in New York.
This drop comes after Bed Bath & Beyond (NASDAQ:BBBY) shares lost two-thirds of their value in the first half of 2022 after sales plummeted.
The shop has already stated that it is having trouble managing its cash and inventory, and it appears that ordering errors have left it with an excess of merchandise that will need to be marked down. In June, board member Sue Gove took over as acting CEO in lieu of outgoing CEO Mark Tritton.
Bed Bath & Beyond (NASDAQ:BBBY) was found to be in arrears with all respondents in a survey of vendors conducted by Pulse Ratings, an independent credit-rating and consulting business. Some respondents reported that more than half of their accounts receivable with the company were past due. The vendors stated in the survey that Bloomberg was able to view that the payments were up to 90 days late.
Respondents complained that management hasn’t provided enough information about how it intends to pay off past-due invoices. Respondents were anonymous in the study, and Pulse Ratings declined to comment on the findings.
After first laboring to accumulate limited inventory, supply-chain problems and declining consumer confidence have left many stores overloaded with items.
According to Bed Bath & Beyond’s (NASDAQ:BBBY) first quarter earnings report, which ended on May 28, revenues decreased and inventory increased by more than 12% over the previous quarter.
Featured Image: Megapixl © Andreistanescu
Author Jowi Kwasu 
