Retailers like Toys "R" Us, as well as sporting goods chain Sports Authority – which liquidated as part of a bankruptcy filing in 2016 – were heavily reliant on very few suppliers to stock their shelves.īed Bath already had a significant debt load prior to the new financing. One factor working in Bed Bath's favor is that it works with a vast number of vendors, and if needed, could replace one that wouldn't ship to the retailer. Gregg and electronics store RadioShack, suffered a similar fate as they struggled to keep shelves stocked and burned through cash due to vendors' tightened payment terms. Other retailers, such as appliance chain H.H. Debt-burdened Toys "R" Us filed for bankruptcy in September 2017, and later liquidated, shortly after its suppliers demanded cash on delivery ahead of the holiday season.
Tension with vendors is often a major reason retailers are pushed toward restructuring. Company leaders acknowledged in a call with investors that it was managing vendor relationships on a week to week basis. The terms can change, however, if a retailer shows signs of financial distress – sometimes pushing a vendor to shorten the payment window, require cash on delivery or halt shipments.īed Bath has already agreed to tougher payment terms and advance payments for some suppliers, the company said in public filings. Typically, suppliers ship goods and get reimbursed weeks or months later. Vendor relationships can make or break a retailer. Bed Bath now intends to sharply scale back those private labels – including discontinuing several. Under Tritton, Bed Bath launched and tried to grow nine exclusive brands. On a call with investors in late August, two days before Arnal's death, company leaders announced the fresh financing and revealed a new merchandising strategy that heavily relies on national brands to get more people into stores. The company is now led by an interim CEO and interim CFO. Chief Financial Officer Gustavo Arnal, who was integral in lining up a new loan for Bed Bath, died by suicide earlier this month. Bed Bath's merchandising chief was also pushed out. They declined to be named because they were not authorized to speak about internal discussions.Ĭhief Executive Mark Tritton, hired in 2019 to oversee the company's previous turnaround effort, got ousted by the board this year. On top of that, tensions with merchandise suppliers grew as the company's problems worsened, according to former executives who recently left the company. Personal Loans for 670 Credit Score or Lowerīed Bath is fighting to win back customers as it contends with a leadership shakeup, a mountain of debt and the aftermath of a meme-stock frenzy fueled by activist investor Ryan Cohen. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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