Bed Bath & Beyond’s Spiral Quickened as Suppliers Lost Patience (2)

Bed Bath & Beyond Inc.’s faster-than-expected decline toward bankruptcy happened in large part because suppliers began to ask for increasingly stringent payment terms and credit requirements heading into the pivotal holiday shopping season, according to people who have worked with the company.

The cash-strapped retailer sometimes struggled to meet those demands, said the people, who asked not to be identified discussing private information. Other suppliers, worried about the financial future of one of the largest US home-goods retailers, halted shipments altogether. The result was fewer products on the shelves just as consumers were looking to spend more.

“Inventory is oxygen. ...