Bed Bath & Beyond warns it may go out of business

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Bed Bath & Beyond Inc. has begun preparations for a bankruptcy filing that would likely come during its first operating quarter of the year, according to people with knowledge of the moves who asked not to be named discussing confidential plans.

By Jeannette Neumann, Eliza Ronalds-Hannon and Reshmi BasuBed Bath & Beyond Inc. has begun preparations for a bankruptcy filing that would likely come during its first operating quarter of the year, according to people with knowledge of the moves who asked not to be named discussing confidential plans.

A representative for Bed Bath & Beyond said in a statement that “no determinations have been made as of this time” regarding the company’s bid to regain market share and enhance liquidity. Following the announcements, Bed Bath & Beyond’s bonds fell to new lows. Its 2024 notes traded down to around 8 cents on the dollar Friday, from around 12 cents Thursday.

“My best guess is that they will go into bankruptcy,” said Lauren Greenwood, president of kitchen storage and organization company YouCopia, which has sold merchandise to Bed Bath & Beyond in the past. She expects the retailer to close additional stores and emerge from a potential bankruptcy filing as a smaller company.

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