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The
company did not say if it would file for bankruptcy after saying
last week it was seeking outside advisers to look at various
options after years of weakening sales.
Bed Bath & Beyond also said it started cost reductions of about
$80 million to $100 million across the business, including
overhead expenses and headcount.
The company's net sales fell 33% to $1.26 billion in its third
quarter as inflation strained consumers' pockets and shoppers
mostly focused on products other than home goods, furniture and
decor - merchandise core to Bed Bath & Beyond's inventory mix.
Bed, Bath and Beyond's inventory fell to $1.44 billion in its
holiday quarter, down 24.9% year on year, after shedding some of
its owned 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.
The big-box retailer is considering skipping its debt payments
due on Feb. 1 in an effort to conserve cash ahead of a possible
bankruptcy filing, Reuters reported earlier.
Bed Bath & Beyond said last week it was exploring options,
including bankruptcy, after taking on $375 million in financing
in August and failing to convince bondholders to swap out their
investments for new debt earlier this month.
Shares of the New Jersey-based company vacillated between slight
gains and losses in heavy pre-market trading.
(Reporting by Arriana McLymore in New York City and Deborah
Sophia in Bengaluru; Editing by Shounak Dasgupta)
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