Bed Bath & Beyond unveiled its turnaround strategy this week, but it likely won't be enough to save the company, according to a restructuring expert, YahooFinance.com reported. “Unfortunately, it's just a little bit too little too late,” Macco CEO Drew McManigle said. “They should have started this process last year if they'd been paying attention to the post-pandemic numbers.” Bed Bath & Beyond’s aggressive turnaround strategy includes plans to raise cash, close approximately 150 stores, and cut 20% of its corporate and supply chain staff as it streamlines its organizational structure and eliminates the COO and Chief Stores Officer roles. The retailer also secured $500 million in additional financing, including a $375 million loan from Sixth Street Partners, bringing its total liquidity to about $1 billion. Bed Bath & Beyond stock was down 28% as of the market close on Friday since the plan was revealed on Wednesday. McManigle warned that these steps may not be enough, and a chapter 11 bankruptcy is a "fait accompli" at this point. “I'm also not convinced that this $500 million in financing is going to be enough cash," McManigle said. "And I'm not convinced that it's going to make any difference in the long term whether they file a chapter 11 proceeding or not because quite frankly that's the only way they're going to be able to successfully restructure $1.3 billion in debt and get out from underneath a lot of real estate.” As of its fiscal first quarter, Bed Bath & Beyond had 955 stores, including 135 buybuy BABY stores and 51 Harmon or Face Value locations. Real estate is a focal point in the retailer's turnaround plan, and Bed Bath & Beyond noted it will continue to “evaluate its portfolio and leases, in addition to staffing, to ensure alignment with customer demand and go-forward strategy.”
