Bed Bath & Beyond to disclose 'strategic update' on Aug. 31

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Shares of Bed Bath & Beyond rallied Friday after the domestic goods retailer said it would provide a "business and strategic update" to investors during a conference call on Aug. 31.

"We recognize the strong interest in our company and our plans to better serve customers, recapture market share, drive growth and profitability, ensure our vendors are supported, and strengthen our balance sheet," Bed Bath & Beyond interim CEO Sue Gove said in a statement. "We look forward to providing an update on our business next week, including a preview of strategies and changes being implemented across the enterprise to deliver results for all stakeholders."

The call will take place at 8:15 a.m. Eastern Time, with a press release and related materials to be issued approximately 45 minutes prior. 

BED BATH & BEYOND SHARES SPIKE AS RETAILER REPORTEDLY SECURES FINANCING DEAL

The announcement coincides with a report from The Wall Street Journal which said the company is reportedly nearing final terms for a loan of close to $400 million from Sixth Street Partners to strengthen its liquidity. A source told the Journal on Wednesday that negotiations to finalize the loan documents are ongoing. 

Representatives for Bed Bath & Beyond and Sixth Street Partners did not immediately return FOX Business' request for comment.

Bed Bath & Beyond

Though Bed Bath & Beyond stock remains popular among retail investors, shares took a hit last week after Chewy.com co-founder and GameStop chairman Ryan Cohen's RC Ventures dumped its 11.8% stake in the company. Cohen, who acquired the stake in March, said at the time that Bed Bath & Beyond was "struggling to reverse sustained market share losses, stem years-long share price declines and navigate supply chain volatility."

He called on the company to "narrow its focus to fortify operations and maintain the right inventory mix to meet demand, while simultaneously exploring strategic alternatives that include separating buybuy Baby, Inc and a full sale of the company." In addition, he expressed concern about the compensation of Bed Bath & Beyond's leadership, including former CEO Mark Tritton, "relative to performance and its strategy for reigniting meaningful growth."

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Bloomberg recently reported that some Bed Bath & Beyond suppliers have halted product shipments due to unpaid bills and several firms that provide short-term financing and credit insurance have revoked coverage of the retailer. Some analysts have also accused Bed Bath & Beyond of turning down air conditioning in its stores to save money. 

Investor Ryan Cohen and the front glass entrance of the Bed Bath & Beyond store in Hyannis, Massachusetts.

Since March, Bed Bath & Beyond has added three new independent directors to its board and committed to explore strategic alternatives for the company’s buybuy Baby business. It has also replaced Tritton with Gove, appointed new chief merchandising and accounting officers and a head of treasury, and discontinued Wild Sage, a private brand of bedding, decor and furniture launched in June 2021. 

Last week, Bed Bath & Beyond said it has been "working expeditiously" over the past several weeks with external financial advisers and lenders to bolster its balance sheet. In addition, Bed Bath & Beyond said in June it had retained Berkeley Research Group (BRG), a leading retail advisory firm, to focus on "cash, inventory and balance sheet optimization."

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In the fiscal first quarter of 2022, Bed Bath & Beyond saw its total net sales fall 25% and comparable sales drop 23% compared to the same period last year amid soaring inflation, a rapid shift in consumer spending patterns and declining demand in its Home sector. 

Bed Bath & Beyond's total liquidity was approximately $0.9 billion, while cash, cash equivalents, restricted cash and investments totaled approximately $0.2 billion at the end of the quarter on May 28. The company burned through more than $500 million in cash during the quarter.

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