Bed Bath & Beyond, the home goods store, is closing 87 stores due to financial difficulties. It will also close all of its Harmon pharmacies and 5 Buybuy Baby stores, according to a company announcement to CBS MoneyWatch.
In August, the company reported the closure of 150 underperforming stores in the United States, in order to reduce expenses due to declining sales.
GlobalData analyst Neil Saunders noted in a research report last year that the chain’s stores are rather messy and lack basic merchandising discipline.
Bed Bath & Beyond is expected to file for bankruptcy soon as it struggles to raise capital to reorganize its business. Earlier this month, Bed Bath & Beyond defaulted on its loans and said it could no longer pay its debt.
The home goods chain said it was considering restructuring its debt in bankruptcy court. The company had already warned that there were substantial doubts that it could stay in business.
Bed Bath & Beyond has struggled for three key reasons, according to experts. For one, it was slow to adapt to the Internet and e-commerce.
In addition, former CEO Mark Tritton also spent $625 million repurchasing shares of the company, prompting suppliers to reduce their business with the retailer.
In a third misstep, the retailer tried to sell a variety of private-label products, but they were of low quality and never attracted shoppers.
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