Bed Bath & Beyond is preparing to file for bankruptcy protection as soon as this week and is in the process of closing additional stores unless a last-minute buyer can make an offer, four people close to the matter told Reuters on Tuesday.
Another person familiar with the situation said the timing of any bankruptcy filing was in flux Monday evening as the retailer’s advisers met to explore any remaining options to avoid liquidation, according to the report.
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Bed Bath & Beyond is currently negotiating a loan to help navigate bankruptcy proceedings, with the investment firm Sixth Street in talks to provide funding, two of the people said. The firm loaned Bed Bath & Beyond $375 million last year but declined to comment on the current matter.
In addition to 150 closures announced in 2022, the erstwhile retail giant is now saying it will close 87 additional Bed Bath & Beyond stores and five buybuy BABY stores. The company is also shutting down its health and beauty discount chain Harmon.
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In a statement to Reuters, the company said it is working with its advisers to consider “multiple paths” but declined to comment on any bankruptcy planning.
Last week, Bed Bath & Beyond said it defaulted on a loan, bringing it closer to bankruptcy. Sources also told Reuters the retailer is considering skipping debt payments due on Feb. 1.
For the quarter ending Nov. 26, Bed Bath & Beyond reported a loss of about $393 million after sales plunged 33%.
Net sales declined 33% to $1.259 billion, predominantly driven by a comparable1 sales decline of 32%.
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Reuters contributed to this article.
Source: https://finance.yahoo.com/news/bed-bath-beyond-could-file-183832698.html