Bed Bath & Beyond warns of bankruptcy as young people have no need for home goods
UNION, N.J. (The Egg) — Bed Bath & Beyond warned investors last week that it's running low on cash and may pursue bankruptcy as they struggle to get customers through the door, particularly young people that have no need for home goods.
The Union, New Jersey-based company issued a statement to investors that identified a viral trend among young people called being poor, that they say is to blame for the retailer’s struggling financial situation.
“There is a growing trend among young people of not owning homes, therefore, not needing home goods,” the company said in a statement. “Many young people are opting to live with several other people and even sharing things like spatulas. If we can’t sell people five variations of spatulas, then we can’t survive as a company.”
The home goods retailer said it’s looking into several options to turn the company around in addition to bankruptcy, even suggesting a rebrand to Communal Bathroom Supply Company, to better reflect the growing demographic of shoppers.
President and CEO Sue Gove admitted in a statement that the company’s merchandise strategy is a little outdated and hopes to provide better options for those that don’t have room for dozens of kitchen utensils and appliances they will never use.
“The merchandise we have in stores may not be suitable for the new generation that choose not to buy homes, and ignore our 20% off coupons we send in the mail,” she said.
In the meantime, Bed Bath & Beyond has laid off nearly 100% of its retail workforce and will switch to the honor system for checkout. The company feels confident that no one would want to steal anything.
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