Retailers with high debt are at risk -investment manager

STORY: Bed Bath & Beyond Inc slid 21% on Friday after Reuters reported that the home goods retailer was preparing to seek bankruptcy protection in coming weeks.

A source told Reuters the company is considering skipping debt payments due Feb. 1, a typical move distressed companies on the verge of bankruptcy take to conserve cash.

"In a higher interest rate environment, leverage is going to be risky and is going to put pressure on a number of companies' cash flows," said Sharma.