- After months of speculation, consumer retail chain Bed Bath & Beyond (BBBY) announced it is filing for bankruptcy
- The New Jersey-based company filed the formal paperwork Sunday for Chapter 11 protection under U.S. Bankruptcy Code
- The company has a commitment of approximately $240 million in debtor-in-possession financing from a third-party lender
- The company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open during the bankruptcy proceedings
- Bed Bath & Beyond (NASDAQ:BBBY) is down 33.29 percent, trading at US$0.20 at 2:56 pm ET
After months of speculation, consumer retail chain Bed Bath & Beyond (BBBY) announced it is filing for bankruptcy.
The New Jersey-based company filed the formal paperwork Sunday for Chapter 11 protection under U.S. Bankruptcy Code.
The company has a commitment of approximately $240 million in debtor-in-possession financing from a third-party lender.
Following approval in U.S. Bankruptcy Court for the District of New Jersey, the company expects financing to provide the necessary liquidity to support operations during the Chapter 11 process.
The company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open during the bankruptcy proceedings.
“Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby. Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY,” Bed Bath & Beyond CEO Sue Grove said in a statement Monday.
“We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders.”
Reports as early as February started to paint a gloom financial picture for the company, which was founded in 1971.
A changing retail landscape hit its profit margins hard and it could not secure the necessary capital for restructuring, although it did raise $225 million through a stock sale earlier this year.
The company has now started a liquidation sale.
“Bed Bath & Beyond Inc. intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets,” the company said in a statement.
“The company has filed motions with the court seeking authority to market Bed Bath & Beyond and buybuy BABY as part of an auction pursuant to section 363 of the Bankruptcy Code. Alongside these efforts, the company is also strategically managing inventory to preserve value. In the event of a successful sale, the company will pivot away from any store closings needed to implement a transaction.”
Bed Bath & Beyond (NASDAQ:BBBY) is down 33.29 percent, trading at US$0.20 at 2:56 pm ET.
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