Bed Bath & Beyond warns investors of possible bankruptcy
Bed Bath & Beyond (BB&B) reported concerning economic figures on Thursday, warning investors that bankruptcy may be on the horizon, which sent the company’s stock price plummeting.
Preliminary earnings reported by BB&B showed slowing sales, with the $1.3 billion figure for the third quarter being about a third lower than the year before. The company also noted lower foot traffic through its stores.
BB&B said it anticipated reporting a loss of $385.5 million for the third quarter, which is nearly $100 million worse than its losses in the quarter last year.
“The Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern,” it said in a statement.
After BB&B released its new estimates, shares plunged by more than 20 percent in early trading on Thursday.
In August, the company had laid out an aggressive strategy of cost-cutting, including both store closures and layoffs. It was the latest push in a string of attempts by different investors and executives to turn around the firm’s misfortunes.
“We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference,” President and CEO Sue Grove said in a statement. “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.”
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