Bed Bath & Beyond expresses 'substantial doubt' it can stay in business

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Bed Bath & Beyond expresses 'substantial doubt' it can stay in business

We apologize, but this video has failed to load.The Union, N.J.-based company said it’s pursuing an array of strategic alternatives, including restructuring debt, selling assets or filing for bankruptcy-court protection, but “these measures may not be successful.”Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

Bed Bath & Beyond called off a planned debt exchange in connection with the warning. It had offered creditors the chance to swap unsecured bonds for a lower face value amount of new secured obligations in order to trim the company’s overall debt load.Article content Following the announcements, Bed Bath & Beyond’s bonds fell to new lows. Its 2024 notes traded down to 21 cents U.S. on the dollar, from around 23 cents U.S. Wednesday, and its 2034 notes fell to eight cents U.S. on the dollar, from around 10 cents U.S., according to Trace.Bed Bath & Beyond warned that it expects to report third-quarter revenue of US$1.259 billion, below the US$1.404 billion analysts had estimated.

“Despite more productive merchandise plans and improved execution, our financial performance was negatively impacted by inventory constraints,” Bed Bath & Beyond chief executive Sue Gove said in a statement. But, she added, “we have already leveraged the liquidity gained from the holiday season to immediately pursue higher in-stock levels with support from our key vendors. We have seen trends improve when in-stock levels have increased.

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