Bed Bath & Beyond Inc.’s faster-than-expected decline toward bankruptcy happened in large part because suppliers began to ask for increasingly stringent payment terms and credit requirements heading into the pivotal holiday shopping season, Bloomberg News reported. The cash-strapped retailer sometimes struggled to meet those demands, said the people, who asked not to be identified discussing private information. Other suppliers, worried about the financial future of one of the largest U.S. home-goods retailers, halted shipments altogether. The result was fewer products on the shelves just as consumers were looking to spend more. The paucity of products accelerated a vicious cycle that Bed Bath & Beyond is still trapped in, with no clear way to escape: It’s unable to get the products it needs to sell to the falling number of shoppers who have continued to visit its 900 or so stores across the U.S. Unable to find what they want, many consumers have stopped going to Bed Bath & Beyond, leading to an even greater drop in sales. That decline has made it harder to pay suppliers.
