A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly//File Photo/File Photo
Bed Bath & Beyond Inc is preparing to file for bankruptcy as early as this weekend, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Shares of the company tumbled nearly 23 percent to 38 cents in after hours trading. They are down about 86 percent since the company said in January that it was exploring options including bankruptcy.
Once considered a category killer in home goods, the Union, New Jersey-based company has seen demand slump in recent years as its merchandising strategy to sell more store-branded products flopped.
Bloomberg Law reported earlier on Wednesday that the struggling retailer was in talks with advisers and lenders ahead of a bankruptcy filing that could come in the next few weeks.
The company is also looking at financing options to help fund itself during bankruptcy, according to the Bloomberg Law report.
Bed Bath did not immediately respond to a Reuters request for comment on both the reports.
The company in February planned to raise around $1 billion in an offering of preferred stock and warrants, but terminated the complex deal after raising $360 million.
The retailer again announced plans in March to sell $300 million worth of shares and warned that it might have to file for bankruptcy if the sale failed.
Bed Bath said last month it was seeking shareholder approval for a reverse stock split in the range of 1-for-5 to 1-for-10 ratio.
Its board has urged shareholders to approve the split, saying that the company might have to file bankruptcy if the plan does not go through.