KBRA Releases KCP Special Report: Bed Bath & Bad News: Looking Beyond the Layoffs

NEW YORK--()--In August 2017, Bed Bath & Beyond announced plans to lay off 880 store managers working at roughly half of its stores and a dozen buybuy BABY locations in the U.S. The announcement followed disappointing Q1 2017 earnings, released in June 2017, which fell 39% year over year as a result of lower brick-and-mortar store sales and high labor expenses. To further reduce expenses, the company is renegotiating the terms of its real estate leases as they expire while considering the closure of up to 100 stores over the next few years, which represent approximately 6.5% of the company’s 1,548-store portfolio. Many large-scale retailers have pursued a similar closure strategy to streamline operations and boost liquidity.

Additional information on deals that are exposed to Bed Bath & Beyond can be found in our KCP report for each transaction. View the full report here.

The KCP platform is a subscription-based surveillance service that covers more than 766 commercial real estate (CRE) securitizations with an aggregate balance in excess of $510 billion. For each deal, monthly KCP reports are posted to our website that contain color and commentary for CMBS transactions and their underlying loan collateral. Unlike other sources of valuation and loss data, which primarily rely on models, the service leverages a dedicated team of analysts, who can more readily appreciate the non-homogenous nature of CRE, loan, and transaction structures, as well as imperfect servicer information.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical Contacts:
KBRA
Kieran Hall, Analyst
(215) 882-5875
khall@kbra.com
or
Nat Buono, Senior Analyst
(215) 882-5849
nbuono@kbra.com
or
Matt Tortorello, Senior Analyst
(646) 731-7625
mtortorello@kbra.com
or
Mike Brotschol, Director
(215) 882-5853
mbrotschol@kbra.com

Contacts

Analytical Contacts:
KBRA
Kieran Hall, Analyst
(215) 882-5875
khall@kbra.com
or
Nat Buono, Senior Analyst
(215) 882-5849
nbuono@kbra.com
or
Matt Tortorello, Senior Analyst
(646) 731-7625
mtortorello@kbra.com
or
Mike Brotschol, Director
(215) 882-5853
mbrotschol@kbra.com