Bed Bath & Beyond Prepares for Bankruptcy Amid Business Woes (2)

Bed Bath & Beyond Inc. has begun preparations for a bankruptcy filing that would likely come during its first operating quarter of the year, according to people with knowledge of the moves who asked not to be named discussing confidential plans.

The Union, New Jersey-based company on Thursday called off a proposed debt exchange and said that it might not be able to continue as a going concern. The company’s shares slumped as much as 25% to $1.27 in New York trading Friday.

Bed Bath & Beyond added in a filing that it’s taking steps to improve its cash position, ...