Meme stock Bed Bath & Beyond (BBBY) has released a list of 56 namesake stores that it intends to close by the end of 2022. The latest step is a part of the company’s cost-cutting and turnaround strategies.
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As per a WSJ report, the 56 stores to be closed are spread out in different states across the U.S., including California, New York, Ohio, Florida, Texas, Michigan, Illinois, etc.
The retailer’s store count has been declining since the onset of the pandemic. As of May 28, 2022, BBBY had 955 stores, including 769 Bed Bath & Beyond stores, 135 buybuy BABY stores, and 51 stores under the brand names Harmon, Harmon Face Values, or Face Values. The store count has reduced drastically from the total count of 1,478 stores reported at the end of the first quarter of 2020.
Other than reducing the store count, the retailer is also laying off about 20% of staff to curb expenses amid falling sales. Moreover, the cash-strapped retailer has recently secured more than $500 million in new financing to prepare for the upcoming holiday season. Also, BBBY plans to issue up to 12 million additional shares to help repay its outstanding obligations.
The retailer is also struggling to find suitable candidates to fill the leadership gap created by the suicide of its CFO and the exit of its CEO.
Will BBBY Go Up?
Bed Bath & Beyond is stuck in the meme frenzy, making it wildly volatile. Any upswing in stock price will only be a temporary phenomenon.
Wall Street analysts are highly pessimistic about BBBY’s stock trajectory. On TipRanks, BBBY stock has a Strong Sell rating based on two Holds versus 13 Sells. The average Bed Bath & Beyond price forecast of $4.18 implies a massive 52.5% downside potential to current levels. Meanwhile, the stock has lost 42% so far this year.
