Bed Bath & Beyond takes a desperate step, teetering on the brink of bankruptcy: Source

Bed Bath & Beyond cuts off an arm to save money in its final hours.

A source told Yahoo Finance that the company informed workers on Thursday that all of its Harmon-branded stores will be closed as the retailer continues to decline.

Harmon, which primarily sells beauty products, operates approximately 52 stores across six states, according to the company’s latest annual report. An employee at a New York store told Yahoo Finance that they were informed of the store’s closure this week.

Following the posting, Bed Bath & Beyond spokeswoman Julie Strider responded to a request for comment and confirmed Harmon’s closure to Yahoo Finance.

“As we consider all avenues and strategic alternatives, we continue to work with our advisors and take action to manage our business as efficiently as possible,” Bed Bath & Beyond spokeswoman Julie Strider said in a Yahoo Finance statement, later adding, “We will keep everyone interested to the parties about our plans as they are developed and completed.”

A customer carries her bags as she leaves the Bed, Bath and Beyond store in New York.  REUTERS/Keith Bedford (UNITED STATES - Tags: BUSINESS)

A customer carries her bags as she leaves the Bed, Bath and Beyond store in New York. REUTERS/Keith Bedford (UNITED STATES – Tags: BUSINESS)

Harmon’s action comes after Bloomberg reported that the company has so far failed to find a buyer in the event of bankruptcy, meaning it could potentially file for Chapter 11 bankruptcy protection without a claimant on its assets.

By the end of 2022, Bed Bath & Beyond’s debt and losses exceeded $1 billion. Bankruptcy rumors have begun swirling around the company, especially after warning in a recent regulatory filing that it may seek such protection in the near future.

The document also revealed that Bed Bath & Beyond has defaulted on its loans following notice from JP Morgan and is unable to find funds to repay its debt.

Bed Bath & Beyond stock has been struggling ever since the meme stock craze propelled its price to $27.23 a share in early 2021 before eventually losing those gains. In September 2022, the company announced that it would close 150 stores in the US.

This post has been updated with confirmation from Bed Bath & Beyond.

Brian Sozzi is the editor-in-chief and Lead at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and beyond LinkedIn.

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