Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Charlotte Pence Bond.
Major retail chain Bed Bath & Beyond has reported severe losses and even said that bankruptcy use could be on the table for the company.
The major retail company is planning to report net sales of around $1.259 billion, down from $1.878 billion in the same time period a year ago. In a statement, the company said that this reflects "lower customer traffic and reduced levels of inventory availability, among other factors."
The time span included the lead-up to Black Friday, The New York Times reported, which is a bad sign for a company that relies on the holidays.
The company also said it is set to have a net loss of around $385.8 million for the third quarter of this fiscal year, "including impairment charges of approximately $100.0 million."
The net loss is an increase from $276.4 million in the same time span last year.
The Wall Street Journal reported that sources said the company is already in the early phase of getting ready to file for a chapter 11 bankruptcy, and talks could go into February.
The company said in its statement Thursday that utilizing bankruptcy was on the table.
"The Company 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. These measures may not be successful,"
The Journal added that the company's stock closed out down 30% on Thursday. The sources also told the outlet that creditors the company already has will probably provide it with the money to get it through the bankruptcy procedure.
The amount of debt that the company is carrying has also been a concern. It has almost $1.2 billion of unsecured notes with maturity dates throughout 2024, 2034, and 2044. It has also said that it has been going through funds at a rapid rate, according to CNBC.
A Bed Bath & Beyond spokeswoman said that the retailer is still operating with counselors to enhance its liquidity and get back its market share. "No determinations have been made as of this time,"
she reportedly said in a statement.
"Strengthening our ability to serve our customers will continue to drive our decision-making. We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference,"
CEO and President Sue Gove said in the statement Thursday. "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."