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Tag: Bed Bath & Beyond Inc

  • CNBC Daily Open: Despite Monday’s bounce, stocks are still shaky

    CNBC Daily Open: Despite Monday’s bounce, stocks are still shaky

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    Traders work on the floor of the New York Stock Exchange during morning trading on August 25, 2023 in New York City.

    Michael M. Santiago | Getty Images

    This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Markets’ last burst for August
    U.S. stocks started the final week of August on an upbeat note, with all three major indexes closing in the green. All but one sector in the S&P 500 were positive. The pan-European Stoxx 600 rose 0.89%, helped by technology and construction stocks, which were the best-performing sectors. U.K. markets were closed for a bank holiday.

    Goldman offloads another acquisition
    Goldman Sachs is selling its personal financial management unit to Creative Planning, a wealth management firm. In May 2019, Goldman acquired United Capital Financial Partners for $750 million. CEO David Solomon heralded the deal as a way to reach high net worth clientele (Goldman focuses on ultra high net worth clientele) — but the bank only captured around 1% of that market by February.

    Monetizing Google Maps data
    Google is planning to license solar and environment data to companies, CNBC has learned. Google has energy data on over 350 million buildings, according to documents CNBC viewed, and sees opportunity to sell the data to companies like Tesla Energy, Aurora Solar and Zillow. The tech giant hopes revenue can hit $100 million in the first year.

    Doomed hope on meme stock?
    Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in April; its share price has hovered around 20 cents since then. Yet investors are still trading the stock at enormous volumes: More than 15 million transactions took place on Aug. 16, according to Nasdaq data. It seems investors are still seized by meme stock frenzy — and might be left as empty handed as the company.

    [PRO] Stocks’ September vulnerability
    We’re in the last trading week for August. Investors may be heaving a sigh of relief because stocks have had more down weeks than up so far this month. But September’s historically the worst month for stocks, according to CFRA data. And stocks still look vulnerable going into the new month, CNBC Pro’s Bob Pisani writes. Here’s why.

    The bottom line

    “There’s an old adage amongst people who cover consumer markets,” said Michael Zdinak, an economist who leads the U.S. consumer markets service at S&P Global Market Intelligence. “Never bet against the U.S. consumer because we’re always willing to spend money we don’t have.”

    Analysts at Deutsche Bank and Morgan Stanley, however, aren’t so optimistic about the consumer.

    “The consumer is less healthy than it appears,” wrote Morgan Stanley analyst Simeon Gutman. Consumers are spending more on services than goods, according to Gutman, which isn’t good news for consumer retailers. Indeed, the retail sector’s been roiled by volatility the last two weeks amid choppy earnings, said Deutsche Bank analyst Krisztina Katai. And investors should expect more turmoil ahead.

    Maybe that warning comes from an overabundance of caution. After all, retail rallied Monday, along with nine other sectors in the S&P 500 (only utilities dipped by 0.04%). Markets broadly rose: The S&P added 0.63%, the Dow Jones Industrial Average gained 0.62% and the Nasdaq Composite climbed 0.84%.

    Markets are trying to make up for a dismal August — so far, the S&P has shed around 3.4%, the Dow 2.8% and the Nasdaq 4.5% — but that might prove a difficult feat. Monday’s rally was just one data point. Moreover, there are more obstacles ahead.

    “The ‘Wall of Worry’ that had all but disappeared by July is being rebuilt – U.S. 10 year yields above 4%, anxiety rising in China, Europe’s economy slumps, and a more sober tone from some U.S. retailers,” Evercore ISI senior managing director Julian Emanuel wrote in a Sunday note.

    That’s not news investors want to hear heading into September, a historically bad month for stocks. Hence, even if markets manage to claw back some losses by the end of this week, it’d be prudent to brace for another trying month.

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  • Bed Bath & Beyond shareholders left holding ‘worthless stock’ as bankruptcy hearing approaches

    Bed Bath & Beyond shareholders left holding ‘worthless stock’ as bankruptcy hearing approaches

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    Bed Bath & Beyond logo is seen on the shop in Williston, Vermont on June 19, 2023.

    Jakub Porzycki | Nurphoto | Getty Images

    Bed Bath & Beyond shares continue to trade at enormous volumes even as the wildly popular meme stock appears weeks away from being declared worthless.

    According to Nasdaq data, more than 15 million transactions took place on Aug. 16 in shares of the stricken home retailer, which filed for Chapter 11 bankruptcy in late April and began closing its brick-and-mortar stores in recent months after multiple cash-raising efforts failed to keep the company above water.

    Its intellectual property was acquired at auction by Overstock, which adopted the Bed Bath & Beyond brand and relaunched the business as an online-only retailer earlier this month. It also plans to adopt the company’s stock ticker and change the current OSTK with BBBY in the hope of capitalizing on the long-standing household name. The original company’s physical stores are closed and its assets will be liquidated.

    In its SEC filing in April, the company cautioned that trading in its stock during the ongoing Chapter 11 cases was “highly speculative and poses substantial risks.”

    “Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders of the Company’s securities in the Chapter 11 Cases,” Bed Bath & Beyond said.

    “The Company expects that holders of shares of the Company’s common stock could experience a significant or complete loss on their investment, depending on the outcome of the Chapter 11 Cases.”

    In its subsequent bankruptcy plan published on July 20, the company confirmed that “in full and final satisfaction of each Allowed Interest in BBB, each allowed interest in BBB shall be canceled, released, and extinguished, and will be of no further force or effect, and no Holder of Interests in BBB shall be entitled to any recovery or distribution under the Plan on account of such interests.”

    Without recovery, the company’s market cap of $152.25 million, essentially boils down to nothing for common shareholders, who fall behind several tiers of bondholders in the reimbursement food chain and do not get a vote on the plan.

    The company’s planned confirmation hearing will take place on Sep. 12, but there have been no positive catalysts to the recent purchases of the company’s shares.

    Activist investor and GameStop Chairman Ryan Cohen spurred optimism last year by suggesting that its successful Buy Buy Baby unit could potentially achieve a billion-dollar valuation, but no qualified bids came to fruition and Dream On Me eventually acquired the baby segment’s intellectual property assets for just $15.5 million.

    This would suggest that the current vast swathes of investors trading in the company’s stock may be doing so purely on doomed speculation, and will be left empty handed.

    Why penny stocks are so risky

    Bed Bath & Beyond‘s stock is down more than 91% since the turn of the year and closed Wednesday’s trade at $0.21 per share. Though the timing of the cancelation of the common stock has yet to be confirmed, it seems retail traders are going to see their investments disappear down the plughole.

    “Our society has decided to be far less regulated in the hopes that it would perfect humanity. Meme stock trading, drug use and gambling all fit this mold,” Cole Smead, CEO and portfolio manager at Smead Capital Management, told CNBC.

    “It causes destruction among the users, but we look the other way because government or business can profit. We are allowing people to become degenerates and don’t care what the repercussions are. We wonder why our urban areas are permanently damaged while people run to less dense locales. They are running from the destruction.”

    Overstock ‘oversold’

    Overstock shares closed Wednesday’s trade at $24.22 per share, down 44% from the $37.86 per share high notched at the start of August. However, it remains up 25% year-to-date.

    Michael Pachter, managing director of equity research at Wedbush Securities, told CNBC Wednesday that it is seeing increased downloads of the Bed Bath & Beyond app since the rebrand launched at the start of the month, with the app moving from the bottom half of the top 100 download list to the top quartile.

    Pachter, who covers the stock, said the download rate indicates that the brand recognition of Bed Bath & Beyond is working for Overstock, and that its shares are now “oversold.”

    “The share appreciation was due to optimism that the rebranding would boost sales, and we have no data to definitively prove that is happening. Investors will have to wait a quarter or two to see if OSTK reports revenue growth, but the app download activity is encouraging,” he said.

    With regards to the original BBBYQ stock (with the Q specifying it’s now in bankruptcy proceedings), Pachter noted that the company’s debt exceeded its assets even after Overstock paid in $21 million.

    “BBBY shareholders are likely to be left with worthless stock. Retail traders likely hope there will be further asset sales, but I’m not sure if there is anything of value left to sell,” Pachter added.

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  • Dream on Me, which bought Buy Buy Baby’s intellectual property, snagged 11 of its store leases at auction, could reopen stores

    Dream on Me, which bought Buy Buy Baby’s intellectual property, snagged 11 of its store leases at auction, could reopen stores

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    “Store Closing” signs at a Buy Buy Baby store in the Brooklyn borough of New York, on Monday, Feb. 6, 2023.

    Stephanie Keith | Bloomberg | Getty Images

    The New Jersey baby retailer that bought Buy Buy Baby’s intellectual property from its bankrupt parent company Bed Bath and Beyond also snatched up 11 of its leases and is well-positioned to reopen stores, court records show. 

    Dream on Me Industries, a longtime supplier to Buy Buy Baby for cribs, strollers and other baby goods, bought the leases at a bankruptcy-run auction on Wednesday for a total price of about $1.17 million, records filed late Thursday show. 

    The company already bought the baby chain’s IP, including its trademark, business data and internet properties, for $15.5 million in an auction late last month, but the deal did not include keeping Buy Buy Baby’s stores open. 

    It is not immediately clear what Dream on Me plans to do with the 11 leases. The retailer does not have a brick and mortar footprint and currently sells its goods through a host of retail partners, including Amazon, Kohl’s, Target, Walmart and Home Depot, according to its website. 

    However, Dream on Me could use the Buy Buy Baby IP assets it already obtained – plus the leases – to reopen the beloved chain. 

    The retailer did not immediately return a request for comment. 

    Long considered the crown jewel of Bed Bath and Beyond’s empire, bidders had primarily been interested in Buy Buy Baby after its parent company declared bankruptcy in late April and announced it would host a series of auctions for its assets.

    Some bidders had been interested in keeping the chain’s stores open, but ultimately, no viable bids emerged.

    Go Global Retail, a brand management firm that owns children’s apparel company Janie and Jack, tried to bid on Buy Buy Baby as a going concern to keep stores open, but the deal ultimately fell apart, CNBC previously reported. 

    About three months into liquidation sales at the chain, very little inventory is leftover, CNBC previously reported. If the stores were to reopen under new ownership, they would likely need to be closed temporarily in order to be restocked, which Dream on Me is well-positioned to do. 

    The leases Dream on Me won at auction, which are considered to be in prime real estate locations, are primarily dotted across the Northeast. 

    Four of the leases are in New Jersey, located in Paramus, Bridgewater, Woodbridge Township and Cherry Hill. Two are in New York while the rest are in Maryland, Delaware, Massachusetts, Connecticut and Virginia. 

    Dream on Me, founded in 1988, has at least six brands under its portfolio, including Evolur Baby, Sweetpea Baby and Slumber Baby.

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  • Off-price retailers to get cheap inventory and real estate from Bed Bath & Beyond’s bust, BofA says

    Off-price retailers to get cheap inventory and real estate from Bed Bath & Beyond’s bust, BofA says

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  • Bed Bath & Beyond files for bankruptcy protection

    Bed Bath & Beyond files for bankruptcy protection

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    A “Store Closing” banner on a Bed Bath & Beyond store in Farmingdale, New York, on Friday, Jan. 6, 2023.

    Johnny Milano | Bloomberg | Getty Images

    Bed Bath & Beyond on Sunday filed for Chapter 11 bankruptcy protection after a series of last-ditch efforts to raise enough equity to keep the business alive failed at the eleventh hour.

    The struggling home goods retailer has been warning of a potential bankruptcy since early January, when it issued a “going concern” notice that it may not have the cash to cover expenses after a dismal holiday season. 

    “Bed Bath & Beyond Inc.today announced that it and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets,” a statement Sunday read.

    “The Company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the Company begins its efforts to effectuate the closure of its retail locations.”

    Bed Bath has been hanging on by a thread ever since but has refused to go down without a fight. It secured what was then-considered a Hail Mary stock offering in early February that was expected to infuse more than $1 billion in equity into Bed Bath, but the plan faltered and brought in only $360 million, the company said.

    At the end of March, Bed Bath announced another stock offering it hoped would bring in $300 million, but that news sent the share price tumbling and it struggled to raise the funds it hoped the offering would provide. As of April 10, the company had sold approximately 100.1 million shares and raised only $48.5 million.

    In filings, the company warned if it didn’t raise the anticipated proceeds from the offering, it would likely have to file for bankruptcy protection.

    Days after the second stock offering was announced, Bed Bath said it had partnered with liquidator Hilco Global to boost its inventory levels. Under the agreement, Hilco subsidiary ReStore Capital agreed to buy up to $120 million in merchandise from the company’s key suppliers after relationships with Bed Bath’s vendors soured because of its liquidity issues.

    However, the plans ultimately proved futile and weren’t enough to keep the lights on.

    The retailer has struggled to maintain relationships with its vendors and has been grappling with low inventory levels, lagging sales and a rapidly dwindling cash pile. 

    Going into the holiday season, Bed Bath had difficulty keeping its shelves stocked and because of its liquidity issues, some vendors began asking for prepayments, the company said in securities filings. 

    CEO Sue Grove had been leading the company through an attempted turnaround she hoped could save the business, but those efforts coincided with high inflation that affected consumer spending while rising interest rates slowed the housing market. 

    Plus, consumers who had spent 2020 and 2021 staying at home and updating their living spaces amid the pandemic were now spending on travel, eating out and other out-of-home experiences. 

    In mid-January, the company was looking to find a buyer willing to keep it afloat with an infusion of cash. Soon, though, Bed Bath revealed in a securities filing that it didn’t have enough cash to pay its debts and had defaulted on its credit line with JPMorgan. 

    The company was able to make its interest payments using funding gained from the first stock offering, but at the time it warned it would “likely” have to file for bankruptcy and see its assets liquidated if the deal didn’t go as planned.

    The company had loans with JPMorgan and lender Sixth Street that were reduced in late March after its second stock offering was announced. At the time, its total revolving commitment decreased from $565 million to $300 million and its revolving credit facility was reduced from $225 million to $175 million. Under the reduced credit agreements, Bed Bath was on the hook for monthly interest payments.

    The company said it was attempting to lower costs by reducing capital expenditures, closing stores and negotiating lease deals but warned in filings the efforts “may not be successful.” 

    At a popular Bed Bath outpost in New York City, a since laid-off staffer recently told CNBC that workers were standing around not knowing what to do after the company suddenly cut off in-store pickup and deliveries at the location. The worker was told liquidators would be coming the following day and soon learned employees wouldn’t receive severance after more than two decades with the company.

    “It was just so fast,” the worker said. 

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  • Crypto-focused bank Silvergate is shutting operations and liquidating after market meltdown

    Crypto-focused bank Silvergate is shutting operations and liquidating after market meltdown

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    Omar Marques | Lightrocket | Getty Images

    Silvergate Capital, a central lender to the crypto industry, said on Wednesday that it’s winding down operations and liquidating its bank. The stock plunged more than 36% in after-hours trading.

    Silvergate has served as one of the two main banks for crypto companies, along with New York-based Signature Bank. Silvergate has just over $11 billion in assets, compared with over $114 billion at Signature. Bankrupt crypto exchange FTX was a major Silvergate customer.

    “In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of Bank operations and a voluntary liquidation of the Bank is the best path forward,” the company said in a statement.

    All deposits will be fully repaid, according to a liquidation plan shared on Wednesday. The company didn’t say how it plans to resolve claims against its business.

    Centerview Partners will act as Silvergate’s financial advisor and Cravath, Swaine & Moore will provide legal services.

    The liquidation comes less than a week after Silvergate discontinued its payments platform known as the Silvergate Exchange Network, or SEN, which was considered to be one of its core offerings. As part of the liquidation announcement, Silvergate clarified that all other deposit-related services remain operational as the company winds down. Customers will be notified should there be any further changes.

    Silvergate said last week it would delay the filing of its annual 10-K for 2022 while it sorted out the “viability” of its business. The company disclosed that the delayed filing was partly due to an imminent regulatory crackdown, including a probe already underway by the Department of Justice.

    Silvergate also attributed the delay to Congressional inquiries, as well as investigations from its banking regulators, which include the Federal Reserve and the California Department of Financial Protection and Innovation.

    Crypto companies like Coinbase and Galaxy Digital raced to cut ties with Silvergate last week after the bank warned that it was unsure whether it could stay in business.

    Silvergate has been struggling for months. In addition to laying off 40% of its workforce in January, the firm reported a nearly $1 billion dollar net loss in the fourth quarter following a rush for the exits at the end of last year that saw customer deposits plummet 68% to $3.8 billion. To cover the withdrawals, Silvergate had to sell $5.2 billion dollars of debt securities.

    The firm went to the Federal Home Loan Bank for an additional $4.3 billion. That loan drew attention from lawmakers like Sen. Elizabeth Warren, D-Mass, who said this “further introduced crypto market risk into the traditional banking system.”

    Investment firms Citadel Securities and BlackRock recently took major stakes in Silvergate, buying up 5.5% and 7%, respectively.

    WATCH: Silvergate plunges in pre-market trading after delaying its annual report

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  • Nordstrom earnings top expectations, retailer says it’s winding down Canada operations

    Nordstrom earnings top expectations, retailer says it’s winding down Canada operations

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    Miami, Florida, Coral Gables Shops at Merrick Park, Nordstrom Department Store with shopper entering. 

    Jeff Greenberg | Universal Images Group | Getty Images

    Nordstrom on Thursday reported lower sales and profits for the holiday quarter, although earnings topped Wall Street’s expectations.

    The company said it expects sales to decline in the new fiscal year, reflecting in part its decision to wind down its Canadian operations.

    “We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business,” CEO Erik Nordstrom said in a release Thursday.

    Here’s what the department store reported for the fiscal fourth-quarter compared with what analysts were anticipating, based on Refinitiv estimates:

    • Earnings per share: 74 cents vs. 66 cents expected
    • Revenue: $4.32 billion vs. $4.34 billion expected

    Nordstrom has struggled with slower sales, more markdowns and scrutiny from a prominent activist investor. Its net income in the period ended Jan. 28 fell to $119 million, or 74 cents per share, from $200 million, or $1.23 per share, a year earlier.

    For the new fiscal year, Nordstrom expects revenue to fall 4% to 6%. It also projected EPS of 20 cents to 80 cents for the year.

    Michael Maher, interim chief financial officer, said Nordstrom factored a more challenging economic backdrop and higher costs into its year-ahead forecast.

    “We expect that elevated inflation and rising interest rates will continue to weigh on consumer spending, especially in the first half of the year,” he said on a call with investors. “We also anticipate continuing inflationary pressure on our expenses especially labor and transportation costs.”

    He said the outlook included an approximately 2.5-percentage-point negative impact from the wind-down of its operations in Canada, a business that drove about $400 million in sales in the fiscal 2022 year.

    As of Jan. 28, the company said it had six Nordstrom stores and seven Nordstrom Rack stores in Canada. Nordstrom said it ceased its Canadian e-commerce platform Thursday. It expects to finish Canadian store closures in Canada by late June.

    Even before Nordstrom reported earnings, it cut its forecast and told investors that it had a rough holiday. In January, the department store chain said its net sales dropped 3.5% for the nine-week period that ended Dec. 31 compared with the year-ago period. Its net sales declined sharply during that stretch at its off-price banner, Nordstrom Rack.

    One of the reasons for disappointing sales? More markdowns. Nordstrom said it discounted merchandise more than expected in November and December, so it could start the fiscal year with a healthier level of inventory.

    The company drew attention and saw its stock soar in February, as activist investor Ryan Cohen bought a large stake in the company. Cohen, the chairman of GameStop and founder of Chewy, is interested in using that position to push for change — including getting former Bed Bath & Beyond CEO Mark Tritton off of Nordstrom’s board.

    Cohen bought, and later sold, a major stake in Bed Bath, after criticizing Tritton’s strategy and pushing for change at that company, too.

    As of Thursday’s close, Nordstrom shares are up more than 19% this year.

    Read the full Nordstrom earnings release.

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  • Bed Bath & Beyond looks for capital infusion, buyer ahead of likely bankruptcy filing

    Bed Bath & Beyond looks for capital infusion, buyer ahead of likely bankruptcy filing

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    Bed Bath & Beyond has been in discussions with prospective buyers and lenders as it works to keep its business afloat during a likely bankruptcy filing, according to people familiar with the matter.

    The retailer is in the midst a sale process in hopes of finding a buyer that would keep the doors open for both of its major chains, its namesake banner and Buybuy Baby, said the people, who weren’t authorized to discuss the matter publicly.

    At the same time, Bed Bath has also been looking for a lender to provide financing that would keep the company going if it were to file for bankruptcy protection in the coming weeks, the people said.

    A Bed Bath spokeswoman said Wednesday the company doesn’t comment on specific relationships but has been working with strategic advisers to evaluate all paths to regain market share and enhance liquidity.

    “Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner,” the spokeswoman said, declining to comment further.

    A representative for AlixPartners, which CNBC recently reported was hired as the company’s advisor, declined to comment.

    Earlier this month Bed Bath warned it may need to file for bankruptcy after its turnaround plans failed to substantially boost sales and repair its balance sheet. The company reported net losses that exceed $1.12 billion for the first nine months of the fiscal year. It’s blown through its liquidity in recent months, shouldered a heavy debt load, and faced strained relationships with its suppliers.

    Comparable sales declined 32% year over year in the most recent fiscal quarter, ended Nov. 26. Company leaders said the company has had a harder time keeping shelves stocked, as vendors change payment terms or decide not to ship merchandise because of the retailer’s financial challenges.

    Last week, CNBC reported Bed Bath had begun another round of layoffs in an attempt to further cut costs. The company had about 32,000 employees as of Feb. 26, 2022, according to public filings.

    The company has been working to find a route that sees its chains survive, the people added. A day before Bed Bath issued a “going concern” warning, it announced in an employee memo that it had hired Shawn Hummell, a former Macy’s executive, to lead its namesake brand’s retail, store operations and merchandising operations as senior vice president of stores. Prior to his time at Macy’s, Hummell worked for Abercrombie & Fitch, another retailer that underwent a turnaround.

    One possible buyer circling Bed Bath is private equity firm Sycamore Partners, according to the people familiar with the discussions. Sycamore is particularly interested in Buybuy Baby, Bed Bath’s banner for infants and toddlers, which has outperformed the broader company. Buybuy Baby has been deemed most likely to survive going forward, the people said.

    Still, a sale of Bed Bath as a whole remains on the table — albeit with a much smaller footprint of stores than it currently has, the people said.

    Sycamore is known for acquiring retailers, like women’s apparel chain Talbots, including distressed companies that have sought bankruptcy attention like Ascena’s Ann Taylor. A Sycamore Partners spokesperson declined to comment. Dealbook previously reported Sycamore’s interest in Buybuy Baby.

    Bed Bath has also drawn interest from companies that acquire the intellectual property, or brands, of companies, particularly those under distress, the people said. Authentic Brands, which has frequented many bankruptcy-run sales for retailers like Forever 21, has also been looking at Bed Bath, the people said. A representative for Authentic Brands didn’t immediately respond to comment.

    Short of a sale, the company and its advisors have been looking to nail down additional financing for a bankruptcy filing, which could occur in the coming weeks, the people said. The company’s advisors are looking for a loan of at least $100 million, one of the people said.

    Last year, Bed Bath received $375 million in new funding from lender Sixth Street Partners, which has provided financing to other retailers like J.C. Penney and Designer Brands.

    Sixth Street’s facility could be converted into bankruptcy financing, the people said, or the lender or others could convert their debt to equity and become Bed Bath’s owner. A representative for Sixth Street didn’t immediately respond to comment.

    Bed Bath’s financing strategy comes as fellow retailer Party City sought Chapter 11 protection this week. Also with a hefty debt load, Party City is looking to restructure its balance sheet and move forward with a smaller footprint.

    Bankruptcy attorney Eric Snyder from law firm Wilk Auslander said a sale was unrealistic for Bed Bath due to its declining sales and inventory, as well as its expanded losses.

    “They don’t have the availability to right the ship, and they don’t have the cash to continue to operate,” Snyder said. “I just don’t see any other option other than a bankruptcy and a liquidation.”

    —CNBC’s Melissa Repko contributed to this report.

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