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Lauren Leach: RETAIL Is Bed Bath & Beyond Going Through Temporary Turbulence or More Serious Challenges? – National Real Estate Investor

Lauren Leach was featured in National Real Estate Investor’s article titled “RETAIL Is Bed Bath & Beyond Going Through Temporary Turbulence or More Serious Challenges?”

“What I see is more than temporary turbulence; the company is facing serious trouble,” says Lauren Leach, director of real estate advisory services at consulting and advisory firm Conway MacKenzie. “Revenue for the company declined 7.3 percent year-over-year in second quarter. It is closing a total of 60 stores—which is up from the initial estimate of 40—and same-store sales have fallen two years in a row.”

“Furthermore, the company’s stock took a nosedive; it has lost 85 percent of its value in the past five years. That’s highly problematic,” Leach notes.

In the company’s most recent earnings call, Bed Bath & Beyond executives revealed they are evaluating several offers for sale-leaseback transactions, which is a strategy employed to quickly generate liquidity, according to Leach. “This implies the company has a need for cash and is taking steps to address it,” she says.

The initial potential proceeds estimate for sale-leaseback transactions is $50 million for approximately 4 million sq. ft. of retail and 500,000 sq. ft. of land.

“If executed, this will most certainly help, but the question remains whether $50 million alone will be enough, and if the timeframe associated to close all of the transactions will be outpaced by the company’s other looming issues,” Leach notes.

To read the entire article click here.