On Thursday, Bed Bath & Beyond Inc issued a business update expressing “substantial doubt” about its “ability to continue as a going concern” and said it may need to declare bankruptcy. The Union-based home goods retailer also said that it expects to record lower sales for the latest quarter than analysts were anticipating.
Based on business performance for the third quarter of fiscal 2022, the company said it determined the need for additional time to complete its quarter-end close procedures, including the evaluation of its results in conjunction with quarterly long-lived asset impairment testing.
Bed Bath said it is continuing to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, but it continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code.
“As always, our employees and partners are our top priorities,” Sue Gove, CEO and president of Bed Bath & Beyond, 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. 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.”