Bed Bath & Beyond Inc. is planning to file for bankruptcy protection as soon as this week and has lined up liquidators to close further stores in the event that no last-minute buyer materialises, according to a report from Reuters quoting information from four people with knowledge of the situation. The4 sources were not named in the report.
According to a second individual with knowledge of the situation, the timing of any bankruptcy filing was in flux Monday evening as the advisers for the American home goods store were engrossed in meetings looking into any potential alternatives.
According to two of the people, Bed Bath & Beyond is in talks with investment firm Sixth Street to receive a loan to aid it in through the bankruptcy process. Last year, the company financed $375 million to Bed Bath & Beyond.
According to two of the sources, the retailer, which was formerly regarded as a category-killer in home items like dinnerware and small appliances, has lined up liquidators who are preparing shop closing deals that might start as early as this weekend.
In addition to the 150 shop closings announced last year, the business has announced it will close 87 Bed Bath & Beyond locations and five buybuy BABY locations. Harmon, a bargain retailer for health and cosmetics, is also closing.
The sources warned that the chain might find a last-minute buyer or still strike a deal for one of its brands, including buybuy BABY. Sometimes prospective purchasers wait until a company declares bankruptcy before agreeing to buy assets in the hopes of securing better terms.
Bed Bath & Beyond declined to comment on any bankruptcy planning but said in a statement to Reuters that it was still working with its advisors to evaluate "various pathways."
The company has previously stated that it was looking into a variety of options, including selling assets, raising money, and filing for bankruptcy, to address declining sales.
Bed Bath & Beyond announced last week that it had missed a loan payment, putting it in danger of going bankrupt. Additionally, sources have told Reuters that Bed Bath & Beyond is thinking of forgoing the February 1 debt payment, a common step that struggling businesses use to save money.
After the holidays, struggling retailers frequently decide to file for bankruptcy protection in order to benefit from the financial cushion offered by recent sales.
In March 2018, Toys R Us filed for bankruptcy, making it the biggest collapse of a speciality shop to date.
Bed Bath & Beyond had 953 locations as of February 2022, including buybuy BABY.
For many years, Bed Bath & Beyond was regarded as the go-to store for couples creating wedding registries and making baby plans, but it lost its footing when it sought to diversify into store brands.
Since then, the retailer's management has changed direction and worked to bring in national names that customers were already familiar with. However, consumers have not taken to the tactic.
The company announced job cuts earlier this month and cast doubt on its capacity to function as a continuing concern.
For the quarter ended November 26, Bed Bath & Beyond reported a loss of nearly $393 million due to a 33% decline in sales.
(Source:www.reuters.com)
According to a second individual with knowledge of the situation, the timing of any bankruptcy filing was in flux Monday evening as the advisers for the American home goods store were engrossed in meetings looking into any potential alternatives.
According to two of the people, Bed Bath & Beyond is in talks with investment firm Sixth Street to receive a loan to aid it in through the bankruptcy process. Last year, the company financed $375 million to Bed Bath & Beyond.
According to two of the sources, the retailer, which was formerly regarded as a category-killer in home items like dinnerware and small appliances, has lined up liquidators who are preparing shop closing deals that might start as early as this weekend.
In addition to the 150 shop closings announced last year, the business has announced it will close 87 Bed Bath & Beyond locations and five buybuy BABY locations. Harmon, a bargain retailer for health and cosmetics, is also closing.
The sources warned that the chain might find a last-minute buyer or still strike a deal for one of its brands, including buybuy BABY. Sometimes prospective purchasers wait until a company declares bankruptcy before agreeing to buy assets in the hopes of securing better terms.
Bed Bath & Beyond declined to comment on any bankruptcy planning but said in a statement to Reuters that it was still working with its advisors to evaluate "various pathways."
The company has previously stated that it was looking into a variety of options, including selling assets, raising money, and filing for bankruptcy, to address declining sales.
Bed Bath & Beyond announced last week that it had missed a loan payment, putting it in danger of going bankrupt. Additionally, sources have told Reuters that Bed Bath & Beyond is thinking of forgoing the February 1 debt payment, a common step that struggling businesses use to save money.
After the holidays, struggling retailers frequently decide to file for bankruptcy protection in order to benefit from the financial cushion offered by recent sales.
In March 2018, Toys R Us filed for bankruptcy, making it the biggest collapse of a speciality shop to date.
Bed Bath & Beyond had 953 locations as of February 2022, including buybuy BABY.
For many years, Bed Bath & Beyond was regarded as the go-to store for couples creating wedding registries and making baby plans, but it lost its footing when it sought to diversify into store brands.
Since then, the retailer's management has changed direction and worked to bring in national names that customers were already familiar with. However, consumers have not taken to the tactic.
The company announced job cuts earlier this month and cast doubt on its capacity to function as a continuing concern.
For the quarter ended November 26, Bed Bath & Beyond reported a loss of nearly $393 million due to a 33% decline in sales.
(Source:www.reuters.com)