BBBY - Bed Bath & Beyond stock slumps despite $120M merchandise agreement

2023-04-05 11:59:28 ET

Bed Bath & Beyond ( NASDAQ: BBBY ) stock slid nearly 10% on Wednesday despite announcing a $120M vendor consignment program.

The agreement, inked between the New Jersey-based retailer and credit-focused investment manager ReStore Capital, requires ReStore to purchase “up to $120M, on a revolving basis at any given time, of pre-arranged merchandise from the company's key suppliers to supplement inventory levels already sold at Bed Bath & Beyond ( BBBY ) and buybuy BABY.” ReStore is a subsidiary of Hilco Global.

“We remain relentless in executing plans that can help us overcome near-term operational and financial challenges,” Bed Bath & Beyond CEO Sue Gove commented.  "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.”

Shares of Bed Bath & Beyond ( BBBY ) slumped 9.27% in midday trading. The slide sent shares to a new 52-week low of $0.32.

Read more on the recent lawsuit filed by former CEO Mark Tritton over allegedly unfulfilled severance agreements .

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