By Yasin Ebrahim
Investing.com -- Bed Bath & Beyond Inc (NASDAQ:BBBY) could file for bankruptcy within weeks as the key holiday season brought little reprieve to the home goods retailer after sales fell short of expectations, The Wall Street Journal reported Thursday, citing unnamed sources.
Bed, Bath & Beyond fell more than 1% in afterhours trading after closing 30% lower.
The retailer is in the initial stages of planning to file for chapter 11 bankruptcy, and discussions could continue into February, the journal said, citing the sources. The update comes just hours after the company warned of substantial doubt to continue business as losses mount.
The home goods retailer said it expects to report third-quarter revenue of $1.26 billion, below Wall Street estimates of $1.404 billion analysts. A chapter 11 filing isn't a foregone conclusion as the company is likely to secure the funds needed to support it through the bankruptcy process from existing creditors, according to the report.