(FreedomBeacon.com)- Bed Bath & Beyond, a major retailer, has disclosed huge losses and even hinted at the possibility of filing for bankruptcy.
According to reports, the large retailer expects to post net sales of approximately $1.259 billion, a decrease from the $1.887 billion reported in the same period last year. A statement explained that this is due to lower customer traffic and reduced levels of inventory availability, among other considerations. The period included the lead-up to Black Friday, a poor indicator for a holiday-dependent corporation.
The business also projected a net loss of roughly $385.8 million for the third quarter of the current fiscal year, including approximately $100 million in impairment costs. The net loss increased from $276.4 million during the same period in the prior year.
According to sources cited by business-related media, the corporation is already preparing to file for chapter 11 bankruptcy, and negotiations could continue into February.
Thursday’s announcement from the corporation indicated that bankruptcy was an option. Thursday’s closing price of the company’s stock was 30% lower. According to the sources, the company’s existing creditors will likely supply the funds necessary to complete the bankruptcy proceedings.
According to a report, the company’s debt load has been a concern. It holds approximately $1.2 billion in unsecured notes with maturities in 2024, 2034, and 2044. It has also stated that it has been burning through funds rapidly.
According to a Bed Bath & Beyond spokesperson, they continually work with counselors to improve its liquidity and regain market dominance. At this time, no decisions have been taken.
In a statement released on Thursday, CEO and President Sue Gove said that strengthening the ability to service consumers will continue to be the driving force behind decisions. They are resetting core elements to create a more robust infrastructure that corresponds closely with consumer demand and choice. Gove will deliver updates on the subsequent formal earnings.
I’m sure My Pillow CEO Mike Lindell feels really bad for them.