Bed Bath & Beyond: Grim outlook

Beleaguered Bed Bath & Beyond warned on Thursday that it may need to file for bankruptcy protection as it struggles to attract shoppers.

The Union, New Jersey-based home goods retailer said that it’s looking at several options, including selling assets or restructuring its business in bankruptcy court. But it acknowledged that even those efforts may not be successful.

Its stock fell about 30% and ended Thursday at $1.69, its lowest since November 1992.

“There is substantial doubt about the company’s ability to continue as a going concern,” the retailer said in a statement. The assessment came as its dismal performance extended through the holiday season.

Bed Bath & Beyond said it expects to report net sales of $1.26 billion for the third quarter ended Nov. 26. That would be a 32% drop from a year earlier. It also anticipates a net loss of roughly $385.8 million for the third quarter, wider than its loss of $276.4 million in the year-earlier period.

The company’s recently appointed CEO and president, Sue Gove, blamed the poor performance on inventory constraints and reduced credit limits that resulted in shortages of merchandise on store shelves.

In August, Bed Bath & Beyond announced it would shutter stores and lay off workers in a bid to turn around its business. It closed about 150 of its namesakes stores and slashed its workforce by 20%. It estimated those cuts would save $250 million in the company’s current fiscal year. It also said in August that it had lined up more than $500 million of new financing. The company also runs the buybuy Baby and Harmon chains.