Initially, Amazon’s ascent did not harm Bed Bath & Beyond (BBBY) in any noticeable way, as revenues continued growing rapidly, leading to a compound annual revenue growth rate of 12.7% in the period 2001-13. Despite already having been around in the 1990s, Amazon only became the online super store that it is today in the 2000s. With their exit, the gradual decline of the firm set in. Capping off a successful first 20 years in business, the company went public on the NASDAQ in 1992 with the ticker symbol BBBY.Īfter crossing the $1bn sales mark in 1999, both founders stepped back from the business and sold all of their stock. In further keeping up with the competition, the firm introduced a computerized inventory system in the early 1990s. Recognizing that, following the trend of specialty stores, super stores were the ‘next big thing’, the founders opened their first super store in 1985 and changed the company’s name to Bed Bath & Beyond, to show that they were now offering a broader selection of products. The company quickly found success, operating 17 stores by 1985, split across the New York City metro area and California. Thus, in order to be on the winning side of the shift towards specialty retail, they started their own specialty retailer focused on bed and bath homeware, called Bed ‘n Bath, in 1971. Warren Eisenberg and Leonard Feinstein were both managers at the now-defunct discount retailer Arlan’s when they noticed that the firm’s struggles would not abate, given the increasing dominance of specialty retailers over generalist stores. Somewhat ironically given its recent history, Bed Bath & Beyond itself was originally born out of a struggling retailer. Given the recent tumult in the banking sector, such an understanding could prove helpful. As the company neared bankruptcy, it scrambled to raise new financing in exotic ways, which we will draw attention to in this article in order to better understand the strategies currently deployed in distressed company financing. The company’s April 23 rd bankruptcy capped off a tumultuous couple of years, during which Bed Bath & Beyond tried to and ultimately failed at turning around its business. Inside the US, however, the firm and its specialty homeware shops were a central part of popular culture. Internationally, Bed Bath & Beyond is probably best known for its prominent role in the 2021 meme stock craze.
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