Bed Bath & Beyond lost a third of its sales during the holiday run-up and is running out of options to avoid bankruptcy.
The retailer said Tuesday that net sales fell 33%, to $1.3 billion, during its latest quarter ending November 26 compared with the same stretch a year ago. It lost $393 million during the quarter, a 42% increase from a year ago.
Sales plunged in large part because Bed Bath & Beyond did not have enough stuff on shelves from suppliers. The company has been revamping its merchandise and eliminating some of its private brands in favor of name brands.
“Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals,” CEO Sue Gove said in a statement Tuesday.
Bed Bath & Beyond previously announced that it would close around 150 stores by the end of its 2022 fiscal year and cut costs by $500 million, including by cutting jobs.
On Tuesday, it said it would look to save $200 million more in costs by eliminating some corporate roles and adjusting its supply chain.
Last week, Bed Bath & Beyond issued a grim message about its future, warning that a bankruptcy filing is a possible outcome for the company. There is “substantial doubt about the company’s ability to continue” because of its worsening financial situation, the home goods chain said in a regulatory filing Thursday.
The company added that it is exploring strategic options, including restructuring its debt, seeking additional cash, selling assets and filing for bankruptcy.
Gove added Tuesday that the company was working with advisers “as we consider all strategic alternatives.”
The company also was hit hard during the pandemic, closing stores temporarily during 2020 while rivals remained open. The company lost 17% of its sales in 2020 and 14% in 2021.