Bed Bath & Beyond (NASDAQ:BBBY) warned in its new 10-Q filing posted on Thursday afternoon that it does not have sufficient resources to repay the amounts under the credit facilities. In addition, a default notice from JPMorgan was received.
The retailer also reiterated that it will consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.
“The Company is undertaking a number of actions in order to improve its financial position and stabilize its results of operations including but not limited to, cost cutting, lowering capital expenditures, and reducing its store footprint including related distribution centers. In addition, the Company will continue to seek reductions in rental obligations with landlords in its determination of the appropriate footprint, seek additional debt or equity capital, reduce or delay the Company’s business activities and strategic initiatives, or sell assets. These measures may not be successful.”
Shares of Bed Bath % Beyond (BBBY) fell 22% in a few minutes before being trading was halted by the exchange for volatility, Following the trading resumption, BBBY pared its drop and was down 14.05% at 2:58 p.m.
BBBY repercussions: Watch these retailers as the most likely to nab sales from closing Bed Bath & Beyond stores.