Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares tanked over 20% on Thursday as the embattled retailer warned it was running out of cash and mulling bankruptcy.
In a regulatory filing Thursday, the Nasdaq-listed company said it had seen slower than expected third-quarter sales because of "lower customer traffic and reduced levels of inventory availability."
Sales in the period, which ended on November 26 last year, plunged more than 30% to $1.25 billion compared to the year-earlier third quarter.
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Issuing a "going concern" warning, Bed Bath & Beyond noted that in upcoming months it likely will not have the cash to cover expenses, such as lease agreements or payments to suppliers.
It added that it was "exploring" financial options, such as restructuring, seeking additional capital or selling assets, as well as potential bankruptcy.
"While the company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the company has concluded that there is substantial doubt about the company's ability to continue as a going concern," it said in a statement.
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