The meme stock favorite Bed Bath & Beyond (NASDAQ: BBBY) seems to be on the verge of bankruptcy. Shares of the omnichannel retailer went into a tailspin in pre-market trading on Thursday, down by more than 15%, after it announced that it was facing liquidity problems.
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The company stated that it was pursuing actions “and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022.” The retailer also warned that it may not be able to release its fiscal Q3 results on time.
Furthermore, the company announced its preliminary fiscal Q3 results and now expects net sales of around $1.26 billion, a decline of around 33% year-over-year as a result of a fall in customer traffic and lower inventory. This revenue estimate fell short of consensus expectations of $1.4 billion.
The retailer has forecasted a net loss in fiscal Q3 to widen to $385.8 million versus a loss of $276.4 million in the same period a year back. The Q3 loss estimate also includes impairment charges of around $100 million.
Shares of BBBY have cratered by more than 80% in the past year.
