CNN –
Bed Bath & Beyond lost a third of its sales during the holiday season and is running out of options to avoid bankruptcy.
The retailer said on Tuesday that net sales fell 33% to $1.3 billion in the latest quarter ended Nov. 26 compared with the same period a year ago. It lost $393 million in the quarter, up 42% from a year ago.
Sales fell in large part because Bed Bath & Beyond didn’t have enough things on the shelves at suppliers. The company has been revamping its merchandise and ditching some of its private labels in favor of name brands.
“While we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was limited and we fell short of our targets,” chief executive Sue Gove said in a statement on Tuesday .
Bed Bath & Beyond previously announced it would close about 150 stores by the end of fiscal 2022 and cut costs by $500 million, including cutting jobs.
On Tuesday, it said it would seek to save another $200 million in costs by eliminating some corporate functions and adjusting its supply chain.
Last week, Bed Bath & Beyond issued a grim message about its future, warning that a bankruptcy filing is a possible outcome for the company. There is “substantial doubt about the company’s ability to continue as a going concern” due to its worsening financial condition, the home goods chain said in a regulatory filing on Thursday.
The company added that it is exploring strategic options, including restructuring its debt, seeking additional cash, selling assets and filing for bankruptcy.
Gove added on Tuesday that the company was working with advisers “as we consider all strategic alternatives”.
Bed Bath & Beyond ( BBBY ) has struggled in recent years to make the transition to online shopping and fend off larger chains like Walmart ( WMT ) and Target ( TGT ).
Many shoppers switched to these competitors when the novelty of Bed Bath & Beyond coupons wore off: Consumers can find many cheaper alternatives on Amazon ( AMZN ) and other places online.
The company was also hit hard during the pandemic, temporarily closing stores throughout 2020 while rivals remained open. The company lost 17% of its sales in 2020 and 14% in 2021.