Bed Bath & Beyond shares plunge after retailer warns it doesn't have the cash to pay down debts

Bed Bath and Beyond said Thursday it doesn't person capable currency to wage down its debts and it has defaulted connected its recognition enactment with JP Morgan, informing erstwhile again of a imaginable bankruptcy.

Shares of Bed Bath plunged Thursday afternoon, prompting little trading halts. The banal was past down astir 20%, giving the institution a marketplace worth of astir $300 million.

In a securities filing, the struggling location goods retailer said it "does not person capable resources to repay the amounts nether the Credit Facilities and this volition pb the Company to see each strategical alternatives, including restructuring its indebtedness nether the U.S. Bankruptcy Code."

Bed Bath owes $550 cardinal nether its asset-backed indebtedness with JP Morgan and $375 cardinal to lender Sixth Street aft expanding its recognition installation successful August past year.

Amid pugnacious macro challenges, Bed Bath's vendors tightened their recognition presumption and chopped limits portion requiring earlier payments during its fiscal 2nd quarter, which prevented the institution from properly stocking its inventory up of the vacation season, the filing states. Some vendors required prepayments, the institution said.

The update Thursday comes respective weeks aft the retailer issued a "going concern" announcement that it whitethorn not beryllium capable to screen its expenses pursuing a worse-than-expected quarter. 

Bed Bath has been exploring its options successful caller weeks. The retailer has been successful discussions to nail down financing that would support it afloat if it were to record for bankruptcy, CNBC antecedently reported.

The institution besides is successful the midst of a merchantability process successful hopes of keeping its namesake concatenation and Buybuy Baby concern alive. In addition, the institution has been preparing for a imaginable section 11 filing successful the U.S. Bankruptcy Court successful New Jersey, CNBC antecedently reported.

This is simply a processing story. Check backmost for updates.