Bed Bath & Beyond Inc (BBBY.O) 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% to 38 cents in after hours trading. They are down about 86% 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.
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.
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.
