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“The allure of getting Willy Wonka’s golden ticket, or blue ticket, is gone,” Dancy said.
Dancy was getting ready to go to the store with her husband that afternoon with a bunch of coupons when she got the call on Sunday when she got the news of the bankruptcy.
“I don’t want to go there and drop $2,000, but I probably will,” Dancy said.
In August, the company announced an aggressive restructuring plan, saying it would close 150 stores and lay off many more employees. I was in emotional turmoil. This death was ruled a suicide.
Bed Bath & Beyond’s suppliers began to get upset and demand an advance payment. Inventory levels have reached about 70% during past holiday seasons, said Sue Gove, who took over as CEO in October.
In early February, the company avoided bankruptcy after coming up with a plan to raise more than $1 billion using a public offering. The plan, backed by Hudson Bay Capital Management, would have worked only if Bedbath and Beyond’s share price was above $1 a share for him. This month, the retailer canceled the transaction for violating its terms. The company’s shares Friday closed at 29 cents a share.
All the while, sales continued to decline and the company lost the cash and confidence its suppliers needed to keep shipping to stores.
“It’s a death spiral. ‘If you don’t have inventory, you can’t sell. If you don’t sell, you lose credibility. When your credibility suffers, people aren’t willing to supply you with supplies.’ It seems impossible to break that cycle.”
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