Bed Bath & Beyond warned Thursday that the company may be facing bankruptcy, according to CNN.
In a filing with the Securities and Exchange Commission on January 5, the home goods retailer said there is “substantial doubt about the company’s ability to continue” due to its financial situation.
Bed Bath & Beyond’s stock dipped 30% Thursday, dropping below $4 a share.
Meanwhile, The Wall Street Journal reported that the company will file for bankruptcy within weeks.
“Bed Bath & Beyond is too far gone to be saved in its present form,” Neil Saunders, an analyst at GlobalData Retail, said Thursday in a message to clients. “All of this points to bankruptcy as being the most likely outcome.”
Sue Gove, CEO of Bed Bath & Beyond, asked for patience, saying that leadership had a clear vision for the future of the company.
“Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress,” Gove said.
Bed Bath & Beyond employed more than 32,000 workers in 950 stores as of February 2022.
In August, however, the company said it would lay off 20% of its corporate employees, close more than 150 stores, and eliminate some of its in-house, exclusive brands.
Founded in 1971, Bed Bath & Beyond specializes in home décor and affordable kitchenware and dorm furniture. A staple of the company has been 20% off blue coupons.
However, the company faced fierce competition from retailers like Target and Walmart as it struggled to transition to online sales. Even the coupons have started to lose their appeal, as competitors such as Amazon often offer better discounts.
The company was also hit hard during the pandemic, losing 17% of its sales in 2020 and 14% in 2021.
As a solution to its current predicament, the company said it would begin restructuring as well as selling assets and seeking additional capital.
