Bed Bath & Beyond sounds bankruptcy warning — again

Bed Bath & Beyond doesn’t have enough cash to pay down its debts. 

In a filing on Thursday with the Securities & Exchange Commission, the embattled retailer warned for the second time in less than a month that it is considering filing for bankruptcy. The filing came days after the company received a delisting warning from Nasdaq.

“At this time, the company does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code,” Bed Bath & Beyond stated in the filing.

As of March, Bed Bath & Beyond had about $3 billion in debt. 

According to a report by The Wall Street Journal, banks have determined Bed Bath & Beyond has defaulted on its credit lines and it doesn’t have the funds to repay them.

Bed Bath & Beyond warned earlier this month, in two financial filings, including one with the SEC, that it was running out of cash and considering bankruptcy, noting there is “substantial doubt about the company’s ability to continue as a going concern.”

In its most recent filing, the company said it is taking a number of actions to improve its financial position, including, but not limited to, cost cutting, lowering capital expenditures, and reducing its store footprint and related distribution centers.

In addition, Bed Bath & Beyond said it 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. It warned “these measures may not be successful.”

As of November 26, 2022, the company had a total of 949 stores, including 762 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 137 Buybuy Baby stores, and 50 stores under the names Harmon, Harmon Face Values or Face Values.