Bed Bath & Beyond Inc. reported a wider net loss than expected yesterday, underscoring the likelihood of a bankruptcy filing within the next couple of months by one of the largest US home-goods retailers, Bloomberg News reported. The beleaguered retailer said its net loss widened to $393 million in the three months ended Nov. 26. Just last week, the company had said it expected to report a net loss of $386 million. That compares with a loss of $366 million in the second quarter. The company reiterated on Tuesday that it was considering “all strategic alternatives” to get back on financial track. “Multiple paths are being explored and we are determining our next steps thoroughly,” Bed Bath & Beyond Chief Executive Officer Sue Gove said in a statement. Last week, the retailer said those options included the possibility of bankruptcy, a warning that came after it withdrew a bond-swap offering. It had launched the plan in October to lessen its debt burden. The company said on Tuesday that it had about $200 million of cash on hand. Read more.
In related news, Bed Bath & Beyond will lay off more employees in an attempt to reduce costs, the company said yesterday, a week after announcing it was exploring options including bankruptcy, Reuters reported. Last year, company executives had said the home goods retailer was cutting about 20% of its corporate and supply chain workforce. "As our strategic direction changes and we streamline our operations, it is necessary to right-size our organization to ensure we are equipped for the future," the company said in a statement on Tuesday, without revealing the magnitude of the new layoffs. Read more.
