Who Wins As Bed Bath And Beyond Loses? Competitors Waiting In The Wings

Oppenheimer analyst Brian Nagel has put forward his view on Bed Bath & Beyond Inc BBBY Chapter 11 bankruptcy filing.
The analyst said the company’s comments suggest that if a buyer of the company does not emerge, management plans to gradually wind down operations.
The analyst is actually hard-pressed to envision a buyer stepping up to save the chain.
Bed Bath & Beyond raked in total revenue of about $5.4 billion in FY22.
The company currently operates 360 Bed Bath & Beyond stores and 120 buybuy BABY units.
Since the company has been struggling for some time, news of the bankruptcy and likely liquidation should not surprise investors.
However, the analyst expects certain chains to capitalize a little on a market share shift away from BBBY, including Williams-Sonoma Inc WSM, Lovesac Co LOVE and Wayfair Inc W that are within the consumer group.
The closure of BBBY stores should further weaken an already upended retail real estate backdrop, providing growth opportunities for still expanding chains such as Five Below Inc FIVE.
The analyst believes that a reluctance of the part of former senior leadership to embrace earlier the potential benefits of ecommerce and invest in digital technologies has undermined Bed Bath & Beyond’s competitive standing.
Price Action: BBBY shares are trading lower by 38.8% at $0.1796 on the last check Monday.