Some Bed Bath & Beyond Suppliers Halt Shipments Over Unpaid Invoices
Some Bed Bath & Beyond suppliers are restricting or halting shipments altogether after the home goods retailer fell behind on payments, according to people familiar with the matter, making it harder for the company to do business. scramble for liquidity.
Several of the companies that provide credit insurance or short-term financing to sellers have revoked Bed Bath & Beyond coverage, according to the people, who asked not to be identified while discussing private information. The Union, New Jersey-based company did not immediately respond to requests for comment.
Shares of Bed Bath & Beyond shed half their value this week after influential investor Ryan Cohen dumped his stake in the company. The stock extended its decline in after-hours trading on Friday, down 6.2% at 5:21 p.m. in New York.
The retailer has previously said it is struggling to optimize cash and inventory, and ordering errors appear to have left it with a glut of merchandise that will need to be sold at discounted prices. Chief executive Mark Tritton stepped down in June, replaced on an interim basis by board member Sue Gove.
A supplier survey conducted by Pulse assessments, an independent credit rating and advisory firm, found Bed Bath & Beyond to be overdue with all respondents, with some claiming that more than half of their accounts receivable from the company were overdue. Payments were 90 days overdue, the sellers said in the survey seen by Bloomberg.
Meanwhile, management lacks guidance on its plans to catch up on overdue bills, respondents said. The survey did not identify the respondents, and Pulse Ratings declined to comment on the report.
Supply chain disruptions and weakening consumer confidence have left many retailers overwhelmed with goods after initially working to build up scarce stocks.
Bed Bath & Beyond’s inventory rose more than 12% in the latest quarter from a year earlier and sales fell, according to its earnings report for its first quarter, which ended May 28. .
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