The company says it’s looking at options including selling assets or restructuring in bankruptcy court – but is dubious of success.
Struggling Bed Bath & Beyond warned on Thursday that the home goods retailer may need to file for bankruptcy as sales continue to drop and it struggles to attract shoppers.
The Union, New Jersey-based company said that it’s looking at several options including selling assets or restructuring its business in bankruptcy court, but it acknowledged that even those efforts may not be successful. Shares lost a quarter of their value on the news to trade at $1.82, their lowest level since November 1992.
“There is substantial doubt about the company’s ability to continue as a going concern,” the retailer said in a statement.
The company’s assessment came as its dismal performance continued through the holiday season.
Bed Bath & Beyond expects to report net sales of $1.26 billion for the third quarter ended Nov. 26. That would be a 32% drop from a year earlier. It also anticipates a net loss of roughly $385.8 million for the third quarter, wider than its loss of $276.4 million in the year-earlier period.
The company’s recently-appointed CEO and president, Sue Gove, blamed the poor performance on inventory constraints and reduced credit limits that resulted in shortages of merchandise on the shelves.
