Is Bed Bath & Beyond nearing the end of the line?
Bed Bath & Beyond (BBBY) will file for Chapter 11 bankruptcy protection within a matter of weeks, according to reports from numerous news outlets.
The reporting, based on discussions with individuals familiar with the retailer’s plans, says that BBBY is in the planning stage prior to a formal Chapter 11 filing.
BBBY lent credence to the accounts with a business update issued yesterday that said “recurring losses and negative cash flow” raise “substantial doubt” about its “ability to continue as a going concern.”
A company spokesperson said “no determinations” have been made on what the retailer will do next.
BBBY said it expects to report sales of roughly $1.259 billion for its fiscal third quarter, which ended Nov. 26, compared to $1.878 billion the year before. BBBY expects to post a net loss of $385.8 million for the quarter compared to its loss of $276.4 million a year earlier.
“Despite more productive merchandise plans and improved execution, our financial performance was negatively impacted by inventory constraints as we partnered with our suppliers to navigate both micro- and macro-economic challenges,” said Sue Gove, president & CEO of BBBY, in a statement. “Reduced credit limits resulted in lower levels of in-stock presentation within the assortments that our customers expect.”
Ms. Gove said that the retailer was able to improve its liquidity during the holiday season and is working on its stock levels. “We have seen trends improve when in-stock levels have increased,” she said.
“Strengthening our ability to serve our customers will continue to drive our decision-making. We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference,” said Ms. Gove. “We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals.”
Ms. Gove said that the company would further update stakeholders next week on its third quarter earnings call.
“Our employees and partners are our top priorities. Our unwavering engagement with our supplier community will continue as we work together to realize our full potential. We are a team focused on the future and I am grateful for the dedication and hard work of those who are powering our path forward. We will continue to steer our business dynamically to ensure Bed Bath & Beyond, buybuy BABY and Harmon remain destinations of choice for customers well into the future.”
- Bed Bath & Beyond Prepares to File for Bankruptcy Within Weeks – The Wall Street Journal
- Bed Bath and Beyond says it may not survive – CNN
- Bed Bath & Beyond shares plummet after company warns of potential bankruptcy – CNBC
- Bed Bath & Beyond Warns of Potential Bankruptcy – The New York Times
- Bed Bath & Beyond Inc. Provides Business Update – Bed Bath & Beyond Inc.