CNN
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Bed Bath & Beyond lost a third of its sales during the holiday season and is running out of options to avoid losses.
The retailer said Tuesday that net sales fell 33%, to $1.3 billion, compared to the same stretch last year on November 26. It lost $393 million in the quarter, up 42 percent from a year earlier.
Sales fell sharply because Bed Bath and Beyond didn’t have enough items on the shelves from suppliers. The company is also revamping its merchandise and divesting some of its private brands over name brands.
“While we moved quickly and efficiently to change category and other merchandising and marketing strategies, inventory was constrained and we were unable to meet our targets,” CEO Sue Gove said in a statement on Tuesday.
Bed Bath & Beyond announced it will close about 150 stores by the end of fiscal 2022 and cut $500 million in costs, including job cuts.
On Tuesday, it said it was looking to save an additional $200 million in costs by eliminating some corporate roles and streamlining its supply chain.
Last week, Bed Bath & Beyond sent a grim message about its future, warning that a bankruptcy filing was a possible outcome for the company. The furniture chain said in a regulatory filing Thursday that “there is substantial doubt about the company’s ability to continue as a going concern” as its financial situation worsens.
The company also announced that it is exploring strategic options, including restructuring its debt, seeking additional funding, selling assets and filing for bankruptcy.
Gove added on Tuesday that the company was working with consultants “as we consider all strategic options”.
Bed Bath & Beyond ( BBBY ) has struggled in recent years to transition to online shopping and fend off larger chains like Walmart ( WMT ) and Target ( TGT ).
As the novelty of bed linens and coupons fade, many shoppers have turned to those competitors — shoppers can find cheaper options on Amazon ( AMZN ) and other online sites.
The company was hit hard by the pandemic in 2020, temporarily closing stores in 2020 while its rivals remained open. The company expects to lose 17 percent of its sales in 2020 and 14 percent in 2021.
