Bed Bath & Beyond stock opened 25% down today: what happened?

Shares of Bed Bath & Beyond Inc (NASDAQ: BBBY) opened nearly 25% down this morning after the retailer warned of potential bankruptcy.

Bed Bath & Beyond stock down on Q3 results

The Union-headquartered firm also reported its unaudited preliminary results for the third financial quarter on Thursday that further disappointed investors.

Revenue printed at $1.259 billion down from $1.878 billion in the same quarter last year. According to the press release, Bed Bath & Beyond ended up losing $385.8 million in Q3. Street had anticipated a much narrower $158 million loss on $1.40 billion in revenue.

Executives attributed the weakness primarily to reduced levels of inventory and lower customer traffic this quarter.

Versus its high in mid-August, Bed Bath & Beyond stock is now down more than 90%.

Bed Bath & Beyond Inc is near bankruptcy

Last year, the retail chain of domestic merchandise said it’s closing about 150 of its stores and lowering its headcount by 20% to cut costs. But the business update this morning suggests such measures are proving to be insufficient to avoid bankruptcy.

Bed Bath & Beyond has close to $1.20 billion in unsecured notes that are set to mature in 2024, 2034, and 2044. In a filing with the SEC on Thursday, the Nasdaq-listed firm said:

BBBY’s net loss this quarter included roughly $100 million worth of impairment charges.