Bed Bath & Beyond lost a third of its sales in the run-up to the holidays and is running out of options. avoid bankruptcy.
The retailer said Tuesday that net sales for the most recent quarter ended Nov. 26 fell 33% to $1.3 billion compared to the same stretch a year ago. , a 42% increase from a year ago.
Sales plummeted when Bed Bath & Beyond couldn’t get enough merchandise on its shelves from its suppliers. The company is revamping its products, eliminating some private brands in favor of big name brands.
CEO Sue Gove said in a statement Tuesday, “Although we have made rapid and effective changes to our assortment and other merchandising and marketing strategies, limited inventory will not allow us to meet our goals. was.
Bed Bath & Beyond previously announced it would close approximately 150 stores by the end of fiscal 2022, saving $500 million in costs, including headcount reductions.
The company said on Tuesday it could save an additional $200 million by eliminating roles for some companies and adjusting its supply chain.
Last week, Bed Bath & Beyond issued a harsh message about the company’s future, warning that filing for bankruptcy was a possible outcome for the company. As such, he said there was “considerable doubt about the company’s ability to continue”.
The company added that it is exploring strategic options such as debt restructuring, additional funding, asset sales and bankruptcy filings.
Gove added on Tuesday that the company is working with advisers “to consider all strategic alternatives.”
The company was also hit hard during the pandemic, temporarily closing stores during 2020 while rivals remained open. The company lost his 17% of sales in 2020 and his 14% in 2021.