Bed Bath & Beyond shares plummeted on Thursday, after the home retail company said that it may need to consider bankruptcy protection as it struggles with its turnaround plan.
In a Securities and Exchange Commission filing, Bed Bath mentioned that it expects a loss of around $386 million for the three months ending on November 6, and total revenues of around $1.26 billion, but said calculating impairment charges would require "significant resources from the Company’s financial, accounting and administrative personnel." It also mentioned exploring several strategic alternatives, including a Chapter 11 bankruptcy filing.
In the early autumn, the company announced a new $500 million loan agreement, and its plans to close around 150 stores and curb overall expenses to around $250 million as part of its turnaround plans under CEO Sue Gove.
"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 to the SEC.