Bed, Bath & Beyond warns of potential bankruptcy
Retailer Bed Bath & Beyond is reportedly considering bankruptcy.
The chain cited worse-than-expected sales and a “going concern” it will likely not have enough cash to cover expenses such as lease agreements or supplier payments, NBC News reported. The company also said it is having trouble getting enough merchandise to fill its shelves.
The New Jersey-based company said it is exploring multiple financial options, including potential bankruptcy.
Shares of the company fell 17% in premarket trading.
The latest announcement is a series of troubling news out of the retail chain. In September, Bed Bath & Beyond said it would close 63 locations as part of a wave of shutdowns that will eventually shutter up to 200 stores.
Stores in 29 states are set to close, with the most in California and New York. Each of those states are set to lose six stores. Two Alabama locations were closing: the Birmingham store at 1640 Gadsden Highway and Alabaster store at 300 Colonial Promenade Parkway.
Bed, Bath & Beyond operates some 955 locations, as well as chains buybuy Baby, Christmas Tree Shops and Harmon Face Values.