Bed Bath & Beyond to close Loveland store
Bed Bath & Beyond has added the Loveland store to the list of retail locations that it will close this year.
The company is facing financial headwinds, has defaulted on loans and has begun a restructuring that includes closing what it said in August would be 150 stores across the country.
The list of closure targets has shifted a bit since then, but the latest list released Tuesday shows three Colorado stores: the Loveland store at 1605 Fall River Drive in Centerra, and stores in Thornton and Pueblo.
Targeted stores are those identified as performing less favorably, the company said.
In August, Sue Gove, director and interim CEO, said the company is “embracing a straightforward, back-to-basics philosophy that focuses on better serving our customers, driving growth and delivering business returns. … We command a special presence in the home and baby markets, and we intend to fulfill our opportunity to be the category retailer of choice.”
However, the financial performance continued to worsen as the year wore on. The quarterly financial report ending Nov. 26 showed assets of $4.4 billion and liabilities of $5.2 billion. The company reported net losses of $393 million for the third quarter and $1.1 billion for the year to date. Those numbers compare with a $2.76 million loss in the same quarter of 2021 and a $400 million loss through the same nine months of 2021.
The company has not filed bankruptcy, but might.
The third-quarter report hints of that: “At this time, the company does not have sufficient resources to repay the amounts under the credit facilities, and this will lead the company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code. The company is undertaking a number of actions in order to improve its financial position and stabilize its results of operations including, but not limited to, cost cutting, lowering capital expenditures, and reducing its store footprint including related distribution centers. In addition, the company will continue to seek reductions in rental obligations with landlords in its determination of the appropriate footprint, seek additional debt or equity capital, reduce or delay the company’s business activities and strategic initiatives, or sell assets. These measures may not be successful.”
That could be an understate
ment. The report also said, “there is substantial doubt about the company’s ability to continue as a going concern for the next 12 months.”
In addition to the Loveland store, the company has stores in Fort Collins, Longmont and Westminster in the region. It had 949 stores nationwide as of late November.