Bed Bath & Beyond warns of possible bankruptcy

Business

In this May 9, 2012 file photo, a Bed Bath & Beyond sign is shown in Mountain View, Calif. (AP Photo/Paul Sakuma, File)

(The Hill) — 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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