Bed Bath & Beyond defaults on credit line, warns on debts

Bed Bath & Beyond said Thursday it doesn’t have enough cash to pay down its debts and it has defaulted on its credit line with JPMorgan, warning once again of a potential bankruptcy.

Shares of Bed Bath plunged Thursday afternoon, prompting brief trading halts. The stock closed 22% down with a market cap of about $295 million.

In a securities filing, the struggling home goods retailer said it “does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the Company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.”

Bed Bath is attempting to cut costs by lowering capital expenditures, closing stores and negotiating lease deals with its landlords but warned “these measures may not be successful.”