In a statement published on Thursday, Bed Bath & Beyond announced that bankruptcy could be an option should the company continue to experience its ongoing financial struggles. The retailer’s shares were down 17% following the statement’s release.
“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,” the statement read.
Sales plummeted more than 30% for the third financial quarter compared to the same period in 2021, falling to $1.259 billion from $1.878 billion. While this quarter came before the traditionally busy holiday season, analysts noted that the struggling retailer faces a myriad of issues including a decline in demand and customer traffic as well as reduced levels of inventory.
As a result of its declining financial performance, Bed Bath & Beyond expects to incur a net loss of $385.8 million for the quarter.