Bed Bath & Beyond files for bankruptcy protection after long struggle (updated)

Bed Bath & Beyond

23/04/2023 11:00

(Adds background)
       April 23 - Bed Bath & Beyond Inc  BBBY.O  filed for
Chapter 11 bankruptcy protection on Sunday after the home goods
retailer failed to secure funds to stay afloat.
    The Union, New Jersey-based home goods retailer filed for
bankruptcy in a District of New Jersey court, listing both its 
estimated assets and liabilities in the range of $1 billion and
$10 billion, according to a court filing.
        Bed Bath & Beyond said that it has received a commitment
of approximately $240 million in debtor-in-possession financing
from Sixth Street Specialty Lending Inc, according to a separate
statement.
        The company added that its 360 Bed Bath & Beyond and 120
buybuy BABY stores and websites will remain open and continue
serving customers as it begins efforts to effect the closure of
its retail locations.
    In February, the embattled retailer had planned to raise
around $1 billion through the offering of preferred stock and
warrants to avoid bankruptcy. 
        The company was able to raise $360 million from the
complex deal helping it pay loan defaults and interest payments
for senior notes.
    But Bed Bath terminated the deal in late March and announced
plans to sell $300 million worth of its shares while also once
again warning it might have to file for bankruptcy if it could
not secure the funds.
    The Union, New Jersey-based home goods retailer, which shot
to popularity in the 1990s as a go-to shopping destination for
couples making wedding registries and planning for new babies,
has seen demand drop off in recent years as its merchandising
strategy to sell more store-branded products flopped.
    Last year's moves to abandon that strategy, and to bring in
more national brands that shoppers recognize, had not shown
signs of working, with the company reporting a loss of about
$393 million after sales plunged 33% for the quarter ending Nov.
26. 
    In January, the company raised doubts about its ability to
continue as a going concern just months after it announced more
than $500 million in new financing, as well as job cuts and 150
store closures. 
    Retailers in distress often look to bankruptcy protection
after the holiday season to take advantage of the cash cushion
provided by recent sales.
    In February, according to a court filing, Bed Bath &
Beyond's Canadian operations were going out of business. The
Canadian division, which operates 54 Bed Bath & Beyond stores
and 11 buybuy BABY stores, is insolvent, the filing posted on
the website of consultancy Alvarez & Marsal showed.
    Bed Bath said in March it was seeking shareholder approval
for a reverse stock split in the range of 1-for-5 to 1-for-10
and its board earlier in April urged shareholders to approve the
split saying that if the plan fails, bankruptcy would be
imminent.

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TIMELINE-Bed Bath & Beyond's rocky ride to the brink of
bankruptcy     urn:newsml:reuters.com:*:nL4N34O2JO
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 (Reporting by Granth Vanaik, Ananya Mariam Rajesh and Anirudh
Saligrama in Bengaluru; Editing by Nick Zieminski, Frances Kerry
and Hugh Lawson)
 ((Granth.Vanaik@thomsonreuters.com;))