Bed Bath & Beyond, the retailer of home goods that is in financial trouble was adamant on Thursday to warn investors about the bleak outlook for its future, stating that bankruptcy could be an alternative.

The company has reported its preliminary results, noting lower sales and slower foot traffic when compared to the year prior. The company reported that its sales were around $1.3 billion in the quarter that ended November. 26. That's about three times less than the previous year. The quarter also included the lead-up towards Black Friday.

The retailer predicted that it could post an operating revenue loss of $36 million during its most recent quarter, far more than the loss of $276 million in the prior year and added that it would require more time than anticipated to complete its books. The share price fell 17 percent during premarket trading.

"The company has found that there is significant doubt as to whether the company is able to remain a viable business," Bed Bath & Beyond stated in an announcement.

Bed Bath and Beyond's chief executive officer, Sue Gove, who formally assumed the role on October 1, stated in a statement that despite "more efficient plans for merchandise and better execution" suppliers have held back which led to less inventory of items in stock.

The retailer, in August, presented an ambitious strategy to improve its business which included closing 150 stores as well as layoffs, cost reductions and cuts. The company has also been trying to re-connect between suppliers, who've lost faith in the business, which had around 1,000 stores prior to the latest restructuring. Bed Bath & Beyond employed 32,000 employees in February 2022 and announced in October that it had shut down about half of its stores that it planned to close.
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