Bed Bath and Beyond reported a wider-than-expected quarterly loss, with sales dropping sharply. Its net losses for the quarter ended November 26 stood at $393mn from $276.4mn a year prior, including a $100.7mn impairment charge. Net revenues were down 33% YoY to $1.26bn. Worryingly, its balance sheet cash and cash equivalents fell steeply to just $153.5mn from $509mn. The CEO, Sue Gove said that the retailer did not meet its goals due to “credit line constraints”. The latest earnings further raises prospects of the company’s bankruptcy filing after it signaled a warning last week.
Bed Bath’s dollar bonds were trading over 0.6-1 point higher at ~7-8 cents on the dollar.
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