Bed Bath & Beyond lost a third of its sales during the holidays and lacked options Avoid bankruptcy.
Net sales fell 33% to $1.3 billion in the latest quarter ended Nov. 26, the retailer said Tuesday. It lost $393 million in the quarter, up 42% from a year ago.
Bed Bath & Beyond’s shelves suffered a major drop in sales due to insufficient inventory from suppliers. The company is revamping its merchandise and shedding some of its private brands in favor of name brands.
“Although we moved quickly and efficiently to change inventory and other business and marketing strategies, inventory was constrained and we fell short of our targets,” Chief Executive Officer Sue Gove said in a statement on Tuesday.
Bed Bath & Beyond previously announced it would close about 150 stores by the end of its 2022 fiscal year and cut costs by $500 million, including job cuts.
On Tuesday, it said it would save $200 million in costs by eliminating some corporate roles and streamlining its supply chain.
Last week, Bed Bath & Beyond released some grim news 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 as a going concern” due to its poor financial condition, the home goods chain said in a regulatory filing on Thursday.
The company added that it is exploring strategic options, including restructuring its debt, seeking additional cash, selling assets and filing for bankruptcy.
Cove said Tuesday that the company is working with advisers “as we consider all strategic alternatives.”
The company was also hit hard during the pandemic, temporarily closing stores in 2020 while competitors remained open. The company lost 17% of its sales in 2020 and 14% in 2021.