The Clap
Bed Bath & Beyond (NASDAQ:BBBY) has sounded a warning to investors that it is running out of cash and is potentially considering bankruptcy.
What
BB&Y has recorded worse-than-expected sales following a difficult period for the retail sector. The company may not have enough cash to cover upcoming lease or supplier expenses.
In addition, the company has struggled to secure merchandise to offer to customers both in-store and online.
So What
The company has more than $1.2bn in unsecured debt notes spread across 2024, 2034, and 2044. With the company’s cash balance rapidly diminishing, it seems unlikely that it will be able to pay this debt off.
The company’s shares plunged around 20% in premarket trading.
Now What
The company is expecting a net loss of around $386mn in Q3 2022, a nearly 40% YoY increase in losses.
