Bed Bath & Beyond To Post Wider Loss In Q3; Considers Strategic Alternatives Incl. Bankruptcy Relief

(RTTNews) - Bed Bath & Beyond Inc. (BBBY) announced it expects a net loss of approximately $385.8 million for the third quarter of fiscal 2022, including impairment charges of approximately $100.0 million. This is compared to a net loss of $276.4 million in the year ago period. Based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, Bed Bath & Beyond has concluded that there is substantial doubt about its ability to continue as a going concern.

The company said it continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code.

"We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals. We look forward to providing an update on these fronts on our formal third quarter earnings call next week," Sue Gove, President & CEO of Bed Bath & Beyond said.

For the third quarter, the company expects net sales of approximately $1.259 billion compared to $1.878 billion, prior year, reflecting lower customer traffic and reduced levels of inventory availability.

Also, the company has filed a Notification of Late Filing with the SEC with respect to its quarterly report on Form 10-Q.

Shares of Bed Bath & Beyond are down 17% in pre-market trade on Thursday.