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Mattress Bathtub & Past warns it might exit of enterprise, inventory tanks

Mattress Bathtub & Past warns it might exit of enterprise, inventory tanks

The tip could also be close to for Mattress Bathtub & Past (BBBY).

In an announcement printed earlier than the market open on Thursday, the corporate stated chapter is on the desk as it really works to shore up its leaky steadiness sheet amid continued monetary struggles.

“The Firm continues to contemplate all strategic options together with restructuring or refinancing its debt, in search of further debt or fairness capital, lowering or delaying the Firm’s enterprise actions and strategic initiatives, or promoting property, different strategic transactions and/or different measures, together with acquiring reduction underneath the U.S. Chapter Code,” Mattress Bathtub & Past stated in an announcement.

“These measures might not be profitable,” the assertion added.

Mattress Bathtub & Past shares fell practically 30% in Thursday’s session. The inventory is buying and selling at ranges not seen since 1993.

For its fiscal third quarter ending November 26, 2022, gross sales dropped over 30%, to $1.259 billion from to $1.878 billion in the identical quarter final yr. The corporate stated these numbers mirrored “decrease buyer visitors and diminished ranges of stock availability, amongst different components.”

Mattress Bathtub & Past expects to report a web lack of $385.8 million for the quarter.

Notably, this era for the corporate doesn’t embrace the majority of the important thing vacation procuring season, which some analysts have stated will seemingly be the final for the struggling retailer.

“Whereas the Firm continues to pursue actions and steps to enhance its money place and mitigate any potential liquidity shortfall, primarily based on recurring losses and adverse money circulation from operations for the 9 months ended November 26, 2022, in addition to present money and liquidity projections, the Firm has concluded that there’s substantial doubt concerning the Firm’s capability to proceed as a going concern,” Mattress Bathtub & Past stated.

Mattress Bathtub & Past warns it might exit of enterprise, inventory tanks

An individual exits a Mattress Bathtub & Past retailer in Manhattan, New York Metropolis, U.S., June 29, 2022. REUTERS/Andrew Kelly

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