Bed Bath & Beyond and Other Companies Will Disappear

Bed Bath & Beyond Inc. (NASDAQ: BBBY) will disappear next year. Its financials are in shambles. It needs more cash to keep inventories healthy during the critical holiday season and needs access to capital to do so. It shuttered a large number of stores recently, in part because this capital is scarce.

Bed Bath & Beyond is among several companies that will not survive by the end of next year. While their brands may survive, the corporations will go bankrupt. Alternatively, the brands may be bought by other companies.

Bed Bath & Beyond’s stock is almost all the evidence needed to support the opinion that it is a disappearing company. Its stock trades at $1.95, against a 52-week high near $30. The pace of the drop steepened when the company said that its revenue declined 28% in the most recently reported quarter.

Another company that will disappear as an independent corporation is Lordstown Motor, the electric pickup manufacturer. Its stock trades at $1.35, down from a 52-week high of $4.27. It delivered its first vehicle to customers recently, which leaves it well behind several competitors, including Ford’s F-150 Lightening. Lordstown lost $154 million in its most recently reported quarter. It had no revenue for the period.

WeWork is in deepening trouble. The Wall Street Journal recently ran the headline: “WeWork’s Once Robust Cash Reserves Have Dwindled, Raising Chances of Default.” WeWork bonds receive low credit rating grades. The stock trades at $1.91, down from a 52-week high of $9.83. Temporary offices have lost their popularity as more and more people have continued to work from home. WeWork has too many locations that are partially empty.

Carvana is close to bankruptcy. Creditors already have spoken to one another about what they will do with the company’s assets. The used car company overbuilt its infrastructure when used car prices were at all-time highs and access to cheap car loans was driven by low rates set by the Federal Reserve.

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