By Bill Peters
Earlier in the day, Bed Bath & Beyond said it was considering a variety of options, ‘including obtaining relief under the US Bankruptcy Code’
Embattled home-goods retailer Bed Bath & Beyond Inc. is planning to file for bankruptcy protection in a matter of weeks, the Wall Street Journal reported on Thursday, after the chain raised the possibility of such a move earlier in the day.
The Journal said that Bed Bath & Beyond (BBBY) was in the “early stages” of readying a Chapter 11 filing. Conversations surrounding the matter could stretch into next month, according to the newspaper, which cited sources familiar with the situation.
Shares of the company, which fell 83% in 2022, caved further on Thursday, closing 30% lower, at $1.69. That marked the lowest closing price since Nov. 9, 1992, when the stock closed at $1.67.
Bed Bath & Beyond, when reached for comment, said it was “working with strategic advisers to evaluate all paths to regain market share and enhance liquidity.” However, it said it had made no determinations yet on the matter, and declined to comment directly on the Journal report.
Earlier Thursday, Bed Bath & Beyond warned that it might need to declare bankruptcy, after forecasting weaker sales for the quarter that ran partly through the holiday shopping season, citing “lower customer traffic and reduced levels of inventory.”
Executives for the company also said that based on recurring losses and negative cash flow from operations in the nine months ending Nov. 26, “the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern.” It added that it was considering a variety of options to right itself, “including obtaining relief under the US Bankruptcy Code.”
The difficulties for the company are the latest in a long line of them. Bed Bath & Beyond’s shares have occasionally shot higher, thanks to the meme-stock craze that began in 2021.
But the chain has dealt with an array of challenges over the years — from competition, supply-chain issues, the pandemic, a miscalculation of demand and a turnaround plan that some said lacked product “newness.”
(END) Dow Jones Newswires
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