![]() ![]() However, fixing this problem won’t be easy. ![]() Indeed, Grove admitted to failing to achieve company goals earlier this year because of the inventory dilemma. According to CNN, the retailer suffers ongoing revenue droughts and mounting losses because it doesn’t have the funds needed to stock its near-empty shelves. What really bothers investors regarding BBBY stock centers on the underlying enterprise falling into an uncontrolled spiral. Fundamentally, the retailer appears only to be delaying the inevitable. Unfortunately, investors were unimpressed with the announcement, sending BBBY stock down about 6% in late-afternoon trading. ![]() Our new vendor consignment program enables us to increase our inventory position in top items that customers are buying and improve the customer experience.” In part, Bed Bath & Beyond President and CEO stated that “e remain relentless in executing plans that can help us overcome near-term operational and financial challenges. Under this agreement, ReStore Capital will purchase up to $120 million, on a revolving basis at any given time, of pre-arranged merchandise from the company’s key suppliers to supplement inventory levels already sold at Bed Bath & Beyond and buybuy BABY, per the accompanying press release. Specifically, the once-proud retailing firm announced a vendor consignment program with ReStore Capital, a credit-focused investment manager providing creative financing solutions in the consumer, retail, commercial, wholesale and manufacturing industries. As a result, BBBY stock continues to fall. Unfortunately, investors likely perceive the move as merely a desperate attempt to stave off bankruptcy. A vendor consignment deal on paper should allow the company to bolster its inventory shortfalls. Desperately thrashing in troubled waters, deeply embattled household goods retailer Bed Bath & Beyond (NASDAQ: BBBY) secured a much-needed financial lifeline. ![]()
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