Bed Bath & Beyond reports bigger quarterly loss as bankruptcy threat looms

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The company did not say if it would file for bankruptcy after saying last week it was seeking outside advisers to look at various options after years of weakening sales.

Bed Bath & Beyond (NASDAQ:BBBY) also said it started cost reductions of about $80 million to $100 million across the business, including overhead expenses and headcount.

The company’s net sales fell 33% to $1.26 billion in its third quarter as inflation strained consumers’ pockets and shoppers mostly focused on products other than home goods, furniture and decor – merchandise core to Bed Bath & Beyond’s inventory mix.

Bed, Bath and Beyond’s inventory fell to $1.44 billion in its holiday quarter, down 24.9% year on year, after shedding some of its owned brands.

“Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals,” CEO Sue Gove said in a statement.

The big-box retailer is considering skipping its debt payments due on Feb. 1 in an effort to conserve cash ahead of a possible bankruptcy filing, Reuters reported earlier.

Bed Bath & Beyond said last week it was exploring options, including bankruptcy, after taking on $375 million in financing in August and failing to convince bondholders to swap out their investments for new debt earlier this month.

Shares of the New Jersey-based company vacillated between slight gains and losses in heavy pre-market trading.