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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.

United Furniture Industries Inc. has filed for chapter 11 protection in an attempt to avoid an involuntary liquidation sought by its largest creditor, Wells Fargo & Co., the Winston-Salem (N.C.) Journal reported. Separately, United has filed its response to Wells Fargo's petition, saying it is "founded upon false and misleading statements" and is "premised on inaccurate and grossly misleading allegation." Both motions were filed in the Northern District of Mississippi. Federal bankruptcy Judge Selene Maddox set a 10 a.m. Friday hearing on the chapter 11 corporate restructuring motion. Maddox did not conduct a hearing Friday into the chapter 7 liquidating motion. United made promotional- to mid-priced upholstered furniture in the U.S. under its brand and the Lane Home Furnishings brand. The manufacturer also imported wooden bedroom and dining furniture. The United motions are the first formal legal response from United since it unexpectedly shut down on Nov. 22.

Party City Holdco Inc. is preparing to file for bankruptcy within weeks after the party-favor retailer’s cash dwindled and inflation dampened sales, WSJ Pro Bankruptcy reported. The company has engaged AlixPartners LLP as a restructuring adviser, the people said. Party City is also in discussions with its bondholders to convert debt into equity to trim the balance sheet. Representatives for Party City and AlixPartners didn’t immediately respond to requests seeking comment. The company is also planning to close some stores. Party City has been suffering from widening net losses, and its recent Halloween sales came in at the low end of expectations in part because inflationary pressures have hampered customers’ willingness to spend, the company said last month. Party City also has engaged law firm Paul Weiss Rifkind Wharton & Garrison LLP as restructuring counsel. Bondholders have been working with law firm Davis Polk & Wardwell LLP as well as financial adviser Lazard Ltd.

Bed Bath & Beyond Inc. is preparing to file for bankruptcy within weeks after the home-goods retailer came up short on sales during the critical holiday season, the Wall Street Journal reported. The retailer is in the early stages of planning for a chapter 11 bankruptcy filing and the discussions could extend into February, these people said. Bed Bath & Beyond warned earlier Thursday that it might file for bankruptcy protection and that it has substantial doubt it can stay in business after enduring another quarter of deep losses and slumping sales. Bed Bath & Beyond stock closed down 30% on Thursday at its lowest level in decades after the company said it was running low on funds and considering several options, including seeking relief in bankruptcy court. It said that sales for its third quarter, which ended in November, are expected to fall by nearly a third and that losses are expected to widen nearly 40% to $385.8 million.

Subsidiaries of an Illinois-based Burger King franchisee, one of the largest in the brand’s U.S. system, reportedly have filed for chapter 11 protection at units operating about 90 restaurants, the Nation's Restaurant News reported. Bloomberg Law reported that chapter 11 filings submitted early this week by TOMS King Holdings LLC’s operating subsidiaries included about $35.5 million in secured debt to Bank of America. Another $14 million of unsecured debt was held by vendors, landlords and Burger King Corp., according to filings. The chapter 11 filing was in the U.S. Bankruptcy Court for the Northern District of Ohio. The suburban Chicago company said its business was impacted by loss of business during the pandemic without decreases in rent, debt service and other costs.

New data from JPMorgan Asset Management published Monday shows estimated "excess savings" from U.S. households now stand at $900 billion, down from a peak of $2.1 trillion in early 2021 and roughly $1.9 trillion at the beginning of last year, YahooFinance.com reported. These savings have been drawn down as the personal savings rate has fallen sharply from historic highs seen during the pandemic. The latest data on personal income and outlays from the BEA, released on December 23, showed the personal savings rate stood at 2.4% in November, down from a record high of 33.6% in March 2020. Stimulus programs rolled out during the pandemic saw a surge in the household savings rate, which typically floated in a range between 7% and 9% of income in the years before the pandemic. Households saved more than 10% of their income in each month between March 2020 and May 2021, building a multi-trillion dollar stockpile of savings to run down in the future. As has been chronicled over the past two years, these accumulated savings for consumers have powered robust spending, even in the face of 40-year highs in inflation and a softening labor market. But with no new stimulus programs imminent and the economy showing some signs of feeling the impact of the Federal Reserve's aggressive rate hikes, the ability for U.S. consumers to power unexpected growth will likely to come to an end.

The U.S. auto industry is expected to report a decline in overall sales for 2022, a year that was challenging for car companies and buyers alike as supply-chain snarls left dealerships with little inventory to sell, the Wall Street Journal reported. On Wednesday, General Motors Co., Toyota Motor Corp. and other auto makers are scheduled to release their year-end sales results, in the midst of growing concern over an economic slowdown that could further damp demand for cars and trucks and put pressure on profits this year. Ford Motor Co. plans to report its 2022 sales on Thursday. Industrywide, U.S. auto sales are projected to total 13.7 million vehicles in 2022, the lowest figure in more than a decade and an 8% decrease from the prior year, according to a joint forecast by J.D. Power and LMC Automotive. Sales are expected to remain well below prepandemic levels of roughly 17 million. The drop-off marks a reversal for a sector that started the year hoping historically low interest rates and an end to parts shortages would fuel a rebound in sales. Instead, vehicles continued to be in short supply as car makers mostly waited for scarce computer chips. Russia’s invasion of Ukraine, a key supplier of auto parts, added to the supply-chain troubles.