1) Shawna Vaughan posted May 15, 2024 9:01 AM
Hello everyone,
Bed Bath & Beyond’s bankruptcy lead to closures which stemmed from a combination of factors. Firstly, the company struggled to keep pace with changing consumer preferences, especially with the shift towards online shopping. Secondly, it faced competition from both traditional discount retailers like Walmart and specialty online platforms like Wayfair. Bed Bath & Beyond didn’t keep a clear brand image, so people saw its stores as boring and messy essentially. Its way of pricing, depending on big discounts and coupons, made profits smaller and pushed away customers. Problems inside the company, like changes in leadership and management troubles, made things worse. If they had acted quickly and well, by improving online shopping, organizing stores better, and adjusting prices, they might have avoided closing down. But because they didn’t change fast enough, Bed Bath & Beyond failed and had to shut its doors.
Reference:
CNBC. (2023, April.). Bed Bath & Beyond files for bankruptcy protection. CNBC. https://www.cnbc.com/2023/04/23/bed-bath-beyond-files-for-bankruptcy-protection.html
2) Patrick Sheffield posted May 14, 2024 9:24 AM
Greetings class,
For today’s discussion, I am going to cover the well-known Pharmacy Rite Aid and their filing of Chapter 11 bankruptcy back in October. Not only was the retail industry in major trouble from inflation, supply chain issues, and online competition, but pharmacies were also facing another unique challenge. Like Walgreens and CVS, Rite Aid was forced to settle costly lawsuits coming from accusations of illegally prescribing opioid prescriptions for customers. On top of this, Rite Aid had a sizable debt that it was not able to get under control. Debt accumulated from losing business to more consumer-friendly competition such as Walmart, Amazon, Target, and Costco. These retailers are nationwide and offer a one-stop shop model that Rite Aid cannot compete with. Lastly, Rite Aid cited losses due to an increase in theft at certain locations. The theft was so bad that some locations had to close.
Rite Aid is an example of how even a major company, with many locations, is never safe from collapse. A big corporation may be able to stave off bankruptcy when dealing with one major problem, but when the problems start to add up, the end is almost inevitable.
Patrick
Maruf, R. (2023, December 25). Here are 7 of the well-known companies that went bankrupt in 2023 | CNN Business. CNN. https://www.cnn.com/2023/12/25/business/here-are-the-companies-that-went-bankrupt-in-2023/index.html
