The share price of Bed Bath & Beyond (BBBY) fell 30% after the retailer warned that it’s running out of cash and is considering filing for bankruptcy protection from its creditors.
Bed Bath & Beyond said in a statement that it likely will not have the cash to cover expenses such as lease agreements or payments to suppliers in coming weeks and is exploring financial options that include a potential bankruptcy filing.
That news sent shares of the company down 30% to close the trading day at $1.69 U.S. The stock is down nearly 90% over the past 12 months.
Bed Bath & Beyond said it is having trouble getting enough merchandise to fill its shelves and is drawing fewer customers to its stores and website, leading to a financial crisis.
The retailer also said it hasn’t been able to refinance a portion of its debt. Bed Bath & Beyond has nearly $1.2 billion in unsecured debt currently.
The company has also seen the departure of its chief executive officer and other top executives, enacted companywide layoffs, and closed dozes of stores. Bed, Bath & Beyond’s chief financial officer (CFO) Gustavo Arnal died by suicide last September.
The company has forecast a net loss of about $385.8 million for its most recent quarter, a nearly 40% increase in year-over-year losses.
Bed Bath & Beyond is scheduled to deliver its latest quarterly results and hold a conference call with analysts on January 10.
