Bed Bath & Beyond States Personal Bankruptcy on the Table

Conservative News DailyJanuary 6, 2023

Completion might be near for Bed Bath & Beyond (BBBY).

In a statement published prior to the marketplace open on Thursday, the business stated personal bankruptcy is on the table as it works to fortify its leaking balance sheet amidst ongoing monetary battles.

“The Company 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,” Bed Bath & Beyond stated in a declaration.

“These measures may not be successful,” the declaration included.

Bed Bath & Beyond shares fell almost 30% in Thursday’s session. The stock is trading at levels not seen since 1993.

For its financial 3rd quarter ending November 26, 2022, sales dropped over 30%, to $1.259 billion from to $1.878 billion in the exact same quarter in 2015. The business stated those numbers shown “lower customer traffic and reduced levels of inventory availability, among other factors.”

Bed Bath & Beyond anticipates to report a bottom line of $385.8 million for the quarter.

Significantly, this duration for the business does not consist of the bulk of the essential vacation shopping season, which some analysts have said will likely be the last for the having a hard time seller.

“While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern,” Bed Bath & Beyond stated.