It left the company unable to buy the inventory required to create the sales it needed to reverse losses.
The $11.8 billion Bed Bath & Beyond spent on its own stock since 2004 comes to more than twice the $5.2 billion in debt it had on its books in its most recent SEC filing, a debt load that proved crushing for the company. Instead, it fueled a desperate and ultimately failed effort to support its stock price. But for a cash-starved business that announced it would likely be forced to close all of its stores if it couldn’t find an 11th-hour savior to buy it, the money could have been better spent. The company’s repurchase program wasn’t unique. Among the most consequential was the $11.8 billion it has spent since 2004 to buy back its own shares. Bed Bath & Beyond made plenty of mistakes that led to this week’s bankruptcy filing.
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