U.S. home products chain Bed Bath & Beyond posted a 24.48 percent decline in its Nasdaq electronic trading on Thursday, to around $1.83, after informing the market that it believes it may file for bankruptcy in the near term.
The company has been in financial trouble for many months. Since its last peak, in January 2021, it has accumulated a 94.8 percent drop in its share price.
This Thursday, it has issued a statement in which it has requested an additional extension to present the income statement for its third fiscal quarter, ending in November 2022. The firm attributed the need for the extra time to the «performance of the company» in the quarter, which makes it necessary to evaluate the results in conjunction with an asset impairment test.
In any case, Bed Bath & Beyond has advanced that it expects to report a net loss of 385.8 million dollars (366.7 million euros), 39.6 percent more than in the same quarter of the previous year. On the other hand, net turnover was 1,259 million (1,196.7 million euros), 33 percent less.
Despite this, the retail chain has indicated that due to recurring losses and negative cash flow from operations in the last nine months, as well as cash and liquidity forecasts, it has «substantial doubts» that it will be able to continue operating.
In this context, Bed Bath & Beyond is considering «all strategic options, including restructuring or refinancing its debt, seeking new resources via debt or equity, reducing business activities or selling assets. It is also considering availing itself of special protection under the country’s bankruptcy law.
Source: (EUROPA PRESS)
