Bed Bath & Beyond (US:BBBY) has announced that it has substantial doubts about its ability to continue as a going concern. The company has released its preliminary Q3 net sales figures, showing $1.26 billion in net sales and a net loss of $385.8 million for the quarter. These figures missed the expected $1.4 billion in sales and worsened from the previous year’s loss of $276.4 million.
After the news the Wall Street Journal reported that the company is considering filing for bankruptcy within the next few weeks, citing unnamed sources. The home goods retailer has not commented on the report.
The company has faced increased competition from e-commerce giants such as Amazon (US:AMZN) and struggled to adapt to changing consumer preferences. It has also faced criticism for its cluttered stores and outdated merchandise. As a result, the company has implemented a turnaround plan and made efforts to streamline its operations and reduce costs. These efforts have included closing underperforming stores, revamping its website, and introducing new merchandise.
However, these efforts have not yet improved the company’s financial performance. In 2020, the company reported a net loss of $1.3 billion and saw its stock price drop by over 50%. In 2021, the company announced that it would be closing 200 stores over the next two years as part of its turnaround plan.
CEO Sue Gove attributed the latest poor performance to inventory constraints and reduced credit limits, which resulted in a lower level of in-stock products. The company is now considering options such as restructuring or refinancing debt and selling assets to stay afloat. However, the company warned that these measures might not be successful.
This article originally appeared on Fintel
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