Bed Bath & Beyond has 'substantial doubt' it can stay in business
MIAMI - The future of Bed Bath & Beyond is looking increasingly dire.
The retailer said that there is "substantial doubt about the company's ability to continue" because of its deepening financial turmoil. In a regulatory filing Thursday, the company said it had slower than expected third-quarter sales because of "lower customer traffic and reduced levels of inventory availability."
Shares fell more than 18% in premarket trading.
Bed Bath & Beyond reported that net sales for its third fiscal quarter, which ended on November 26, 2022, sank more than 30% to $1.25 billion compared to the same quarter a year earlier.
In the filing, CEO Sue Grove said that the announcement "underscores the importance of having initiated a turnaround," which the company revealed last August. The plan called for laying off approximately 20% of corporate employees, closing around 150 stores and slashing several of its in-house home goods' brands
"Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress," Grove said.
She was tapped as the company's permanent CEO last October following an interim stint. Former CEO Mark Tritton left the company in June 2022 for failing to turn around the company.
"Strengthening our ability to serve our customers will continue to drive our decision-making," Grove said. "We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference."
Despite her optimistic tone, Bed Bath & Beyond stated that it "continues to consider all strategic alternatives" including restructuring its debt, seeking an additional cash infusion and selling assets.
