Can someone explain to me why it is not unusual for BBBY to close a store that is actually performing very well? I have a friend who used to work in one such store that was closed some time ago.
7 replies (most recent on top)
Lease is considered too expensive. You need to know the bottom line contribution.
Well, I just found out that one of the stores in our market is closing. It was not on the original 56 list! So there you go. No guarantees and this store did have good numbers. Food for thought.
Closed some time ago? A "friends store"? And you are just wondering now?
Here is a helpful tool. Go outside and look at the front of the building, if it has a sign that says Bed Bath and Beyond, it will close sooner or later. 👀
Because the long game is winding down the company while trying to extract as much money as possible. Anyone who thinks BBBY is going to survive is wishing upon a star.
Bad terms on lease,higher rent asked. Store too large for area, etc. I do not know how they worked it out at the stores that did not pay rent to warehouse items during lockdown. Many were sued and threatened with eviction. Left a bad taste in the mouths of many landlords. On the other hand, one store still open had its roof replaced about 3 times in 4 years and it was a huge store. It kept leaking. One time it was actually open to the air around holes and it looked like a cathedral. So not saying BBBY does not have legit gripes with many landlords, either.
Most likely due to something about the lease.