Bed Bath & Beyond gets delisting warning from Nasdaq
Bed Bath & Beyond has been hit with another setback.
The embattled home goods retailer said it has received a warning that it is not in compliance for continued Nasdaq listing because it has not yet filed its Form 10-Q quarterly report (for the period ended Nov. 26,2022) with the Securities and Exchange Commission.
“The Notice has no immediate effect on the listing or trading of the company’s common stock on the Nasdaq Global Select Market,” Bed Bath & Beyond said in a release.
The Union, New Jersey-based retailer said it continues to work diligently to finalize its quarterly report and plans to file the report “as promptly as possible to regain compliance with the Listing Rule.”
Bed Bath & Beyond has 60 calendar days from the notice date to submit a plan to regain compliance. If Nasdaq accepts the plan, the company may receive 180 calendar days from the report’s original due date to file its quarterly report. In this case, that date would be July 23.
The Nasdaq warning comes as speculation is mounting that Bed Bath & Beyond is moving closer to filing for bankruptcy. On January 10, the company released its third-quarter results, which included a wider-than-expected loss of $393 million and a 32% drop in comparable sales. Total year-over-year sales fell 33% to $1.3 billion. The company also announced the closure of approximately 130 stores.
Days before releasing the quarterly results, Bed Bath & Bath warned that it was running out of cash and considering bankruptcy, and noted there is “substantial doubt about the company’s ability to continue as a going concern.”
In related news, CNBC reported that Bed Bath & Beyond has hired law firm Cole Schotz as it preps for a potential bankruptcy filing in its home state of New Jersey. CNBC previously reported that the chain has been in discussions for financing to keep it afloat if it does file for bankruptcy.
Bed Bath & Beyond has been working with advisors, including Kirkland & Ellis. It also has hired consulting firm AlixPartners as one of its advisors.
“We have a team, internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger,” a Bed Bath & Beyond spokeswoman told CNBC in a statement.
As of November 26, 2022, the company had a total of 949 stores, including 762 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 137 Buybuy Baby stores, and 50 stores under the names Harmon, Harmon Face Values or Face Values.