Shares of Bed Bath & Beyond (NASDAQ:BBBY) continued to fall in morning trading on Wednesday even as the struggling domestic merchandise retailer facing bankruptcy threat announced that it had entered into a vendor consignment program with ReStore Capital, an investment manager under Hilco.
According to this agreement, ReStore Capital will purchase up to $120 million of prearranged merchandise, on a revolving basis at any given time, from Bed Bath & Beyond’s key suppliers to supplement inventory levels at BBBY stores and Buybuy Baby.
The retailer has been struggling to keep its shelves stocked after its vendors tightened their credit terms, slashed credit limits, and asked for prepayments before agreeing to fulfill orders.
Sue Gove, President & CEO of Bed Bath & Beyond said, “We remain relentless in executing plans that can help us overcome near-term operational and financial challenges. Our new vendor consignment program enables us to increase our inventory position in top items that customers are buying and improve the customer experience. This capital-light solution can allow us to strengthen merchandise availability and better fulfill demand.”
The company has been exploring all options to stay afloat including raising capital through an “at-the-market” offering of potentially $300 million in shares.
BBBY stock has already lost more than 85% of its value year-to-date.
