(The Hill) — Bed Bath & Beyond reported concerning economic figures on Thursday, warning investors that bankruptcy might be on the horizon, which sent the company’s stock price plummeting.

Preliminary earnings reported by the company showed slowing sales, with the $1.3 billion figure for the third quarter being about a third lower than the year before. The company also noted lower foot traffic at its stores.

The company said it anticipated reporting a loss of $385.5 million for the third quarter, which is nearly $100 million worse than its losses in the quarter last year. 

“The Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern,” it said in a statement.

After the new estimates were released shares plunged by more than 20% in early trading on Thursday. 

In August, the company had laid out an aggressive strategy of cost-cutting, including both store closures and layoffs. It was the latest push in a string of attempts by different investors and executives to turn around the firm’s misfortunes.

“We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference,” President and CEO Sue Grove said in a statement. “We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals.”