Struggling home goods retailer Bed Bath & Beyond Inc. (Union, N.J.) says it may not be able to stay in business. The company made that announcement in a business update that included its preliminary, unaudited estimated financial results for the three months ended Nov. 26, 2022, which showed its sales for the period were about $1.259 billion, down from $1.878 billion a year earlier.
“While the company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended Nov. 26, 2022, as well as current cash and liquidity projections, the company has concluded that there is substantial doubt about the company’s ability to continue as a going concern,” the statement said.
The company also said it continues to consider all strategic alternatives, including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code.
Despite that dire outlook, the release also included this statement from President and CEO Sue Gove: “We have a clear vision for the future of the company. Today’s announcement underscores the importance of having initiated a turnaround at the start of the third quarter and why we strengthened our leadership team to execute each step with precision. Our plan has two anchors: the first enables us to refocus merchandising and inventory, operate more efficiently and grow our digital and omni-capabilities, and the second focuses on strengthening our financial position. Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress…
“We look forward to providing an update on these fronts on our formal third quarter earnings call next week.”