Bed Bath & Beyond Traced an Erratic Path to Its Current Crisis

The current crisis at Bed Bath & Beyond Inc., which on Thursday reported its lowest second-quarter revenue since 2006, is the culmination of years of management missteps and a dysfunctional corporate culture, according to people who have worked at the company.

The company said sales in the three months ended Aug. 27 fell 28% from a year earlier, the fifth consecutive quarter in which the retailer reported a double-digit fall in revenue. Bed Bath & Beyond said the job cuts and store closings it announced earlier this month are helping to cut costs. To stem the plunge in sales, the company is betting on its plan to discontinue three of its nine private-label merchandise lines and to sell updated versions of the well-known national brands that drew consumers to its stores during its heyday about a decade ago.