The past couple of years have been tough on retailers. The combination of inflation and elevated interest rates has cut into already tight margins. And shifting consumer spending patterns have left many retailers struggling to stay afloat.
When Party City filed for bankruptcy in January 2023, it was a sign of things to come. A month later, discount home goods retailer Tuesday Morning filed for bankruptcy and subsequently followed through with plans to shutter 200 stores.
Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023 and wound up closing all of its existing stores in the process.
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Many consumers were devastated to see Bed Bath & Beyond go and wondered where they’d turn for dorm room shower caddies and replacement kitchen tools – not to mention what they’d do with their stockpiled coupons. But the company had been grappling with years of declining sales, heavy debt, and strong competition from big-box stores and Amazon alike.
In June 2023, Overstock.com, now known as Beyond Inc., acquired Bed Bath & Beyond for $21.5 million and turned the brand into a fully online retailer. But it hasn’t been smooth sailing.
The company reported a net loss of $259 million for its most recent fiscal quarter in February. Delivered orders decreased 34% annually, and total net revenue plunged 21.1% year over year.
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Big changes are needed to revive a beloved brand
Recognizing the need to pull itself out of its recent slump, Beyond Inc. has announced a number of leadership changes that could help the company shift gears in a positive way.
On March 10, executive chairman Marcus Lemonis became the company’s principal executive officer following the termination of 16-year company veteran Dave Nielsen. Adrianne Lee, Beyond’s chief financial officer, has been tapped as president and CFO, while Leah Putnam is now the chief accounting officer.
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These leadership changes came roughly two weeks after Lemonis told investors that the company is unlikely to turn a profit this year.
“We are committed to making money and returning this business to growth and will not let any obstacles deter that goal,” Lemonis said in a statement regarding the changes. “This leadership team is best suited to carry out our mandate of delivering profitable commerce.”
Lemonis, who’s known as the star of The Profit, has experience saving businesses from financial ruin. Lemonis joined Beyond as a director in October 2023 and became the executive chairman about a year ago. In his new leadership position, Lemonis plans to focus on increasing brand expansion and building strategic partnerships.
Can Beyond Inc. remain competitive?
Beyond Inc. has a number of well-known brands under its umbrella — Bed Bath & Beyond, buybuy Baby, Overstock, and Zulily. And what those brands have going for them is fan loyalty.
But as distinctive as these brands may be, they face stiff competition from online giants like Amazon. And as big-box and department stores continue to sink money into improving the online experience, it’s unclear as to whether all of Beyond’s brands will be sustainable on a long-term basis.
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Still, a shift in leadership could be just what Beyond needs to improve its bottom line. The company announced that in addition to leadership changes, it plans to focus on cutting $15 million in costs in the coming year — something Lemonis said has been an ongoing priority.
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“I look forward to driving our strategic priorities and positioning Beyond for long-term success,” Lee added in a statement.
Beyond has pursued several partnerships in recent months to set itself up for growth, including an arrangement with home goods powerhouse Kirkland. A $40 million deal with The Container Store, however, fell through ahead of the company’s bankruptcy filing in late 2024.
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