Bed Bath & Beyond warns it may go out of business, stock tanks to lowest levels in 30 years
The end may be near for Bed Bath & Beyond (BBBY).
In a statement published before the market open on Thursday, the company said bankruptcy is on the table as it works to shore up its leaky balance sheet amid continued financial struggles.
"The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company's business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code," Bed Bath & Beyond said in a statement.
"These measures may not be successful," the statement added.
Bed Bath & Beyond shares fell nearly 30% in Thursday's session. The stock is trading at levels not seen since 1993.
For its fiscal third quarter ending November 26, 2022, sales dropped over 30%, to $1.259 billion from to $1.878 billion in the same quarter last year. The company said those numbers reflected "lower customer traffic and reduced levels of inventory availability, among other factors."
Bed Bath & Beyond expects to report a net loss of $385.8 million for the quarter.
Notably, this period for the company does not include the bulk of the key holiday shopping season, which some analysts have said will likely be the last for the struggling retailer.
"While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the Company has concluded that there is substantial doubt about the Company's ability to continue as a going concern," Bed Bath & Beyond said.
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