Bed Bath & Beyond Reports Bigger Quarterly Loss As Bankruptcy Threat Looms

Reuters2023-01-10

Bed Bath & Beyond Inc(BBBY.O)on Tuesday reported a quarterly loss of about $393 million after a tough holiday season that it hoped would provide a financial cushion to its months-long cash burn.

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

Bed Bath & Beyond also said it started cost reductions of about $80 million to $100 million across its corporate business, including overhead expense and headcount.

The company's net sales dropped 33% to $1.26 billion in its third quarter as inflation strained consumers' pockets and shoppers mostly focused on products other than homegoods, furniture and decor - merchandise that is key to Bed Bath & Beyond's inventory mix.

The big-box retailer isconsidering skipping its debt paymentsdue 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, failing to convince bondholders to swap out their investments for new debt earlier this month.

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