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Some Bed Bath & Beyond suppliers halt shipments on unpaid bills

Some Bed Bath & Beyond suppliers are restricting or halting shipments altogether following the home-goods retailer fell behind on payments, in accordance with people acquainted with the problem, complicating the companysscramblefor liquidity.

Many of the firms offering credit insurance or short-term financing to vendors have revoked coverage of Bed Bath & Beyond, based on the people, who asked never to be identified discussing personal information. The Union, New Jersey-based company didnt immediately react to requests for comment.

Bed Bath & Beyond shares shed half their value this week after influential investor Ryan Cohen dumped his stake in the business. The stock extended its decline in after-hours trading Friday, down 6.2% at 5: 21 p.m. in NY.

The retailer has previously said it really is fighting cash and inventory optimization, and ordering missteps may actually have gone it with a glut of goods which will need to be sold at markdowns. CEO Mark Tritton stepped down in June, replaced on an interim basis by board member Sue Gove.

A survey of vendors done byPulse Ratings, an unbiased credit-rating and consulting firm, discovered that Bed Bath & Beyond was in arrears with all respondents, with some saying that over fifty percent of these accounts receivable with the business were overdue. The payments were late by around 90 days, the vendors said in the survey seen by Bloomberg.

Meanwhile, management is short on guidance about its plans to catch through to past-due bills, respondents said. The survey didnt identify respondents, and Pulse Ratings declined to touch upon the report.

Supply-chain disruptions and weakening consumer confidence have gone many retailers swamped with goods after first attempting to build-up scarce inventory.

Bed Bath & Beyonds inventory was up a lot more than 12% last quarter when compared to prior year and sales fell, in accordance with its earnings report because of its first quarter, which ended May 28.

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