Ex-Home Depot CEO Bob Nardelli Sounds Alarm On U.S. Economy: ‘We’re Going To See A Lot Of Bankruptcies’ – Home Depot (NYSE:HD)
In a recent interview, Bob Nardelli, the former CEO of Home Depot HD, warned that the U.S. economy is “very complex” and cautioned consumers that middle-market companies are under “tremendous pressure.”
What Happened: Nardelli shared his views during an appearance on Fox Business’ “Cavuto: Coast to Coast” on Friday, explaining that there will be a “lot of bankruptcies” while citing home furnishing retailer Bed Bath & Beyond Inc. BBBY as an example.
“I think we’re going to see a lot of bankruptcies, like Bed, Bath and Beyond,” Nardelli said. “We got Walmart not only laying people off but closing stores. We got Accenture laying people off. We got Amazon closing distribution centers.”
See Also: Walmart Closes Four Chicago Stores As Losses Run In Millions
Bed Bath & Beyond is teetering on the brink of bankruptcy, due to issues within the company and the wider retail sector.
The “complexity” of the American economy, Nardelli continued, is “different than anything I have seen in my 52 years.”
Why It’s Important: Over the next five years, more than 50,000 retail locations may shut down permanently, according to UBS analysts. By the end of 2027, such closures could reportedly result in a 5% reduction in the current 940,000-plus U.S. store count.
Nardelli added that, due to major players like Bed Bath & Beyond, Foot Locker Inc. FL and Tuesday Morning reducing their footprints, the number of closed stores is already up significantly in 2023 compared to 2022.
Nardelli said that he is “definitely worried” because Congress’ failure to come together to raise the debt ceiling limit has put an unprecedented strain on companies.
Read Next: Economist Lists 3 Recession Red Flags Investors Should Be Watching In 2023
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