Sixth Street considers bidding for Bed Bath & Beyond assets - WSJ

Bed Bath & Beyond

15/06/2023 21:32

June 15 (Reuters) - Bed Bath & Beyond's lender Sixth
Street Partners is considering bidding for at least some of the
bankrupt retailer's assets, the Wall Street Journal reported on
Thursday, citing a court hearing. 
    Sixth Street is planning to use more than $500 million of
its debt in the company to bid, the report said, citing the
investment firm's lawyer in a bankruptcy-court hearing on
Wednesday. 
    If other offers for Bed Bath & Beyond's assets come up less
than what Sixth Street considers satisfactory, the lender plans
to bid in the form of debt forgiveness, the report added, citing
people with knowledge of the matter.
    Bed Bath & Beyond, Sixth Street and the lender's lawyer
David Hillman did not immediately respond to Reuters' requests
for comment.
    Sixth Street, which loaned Bed Bath & Beyond $375 million in
2022 amid the home goods chain's struggle to stem steep losses
and sales declines, has replaced JPMorgan Chase as the company's
senior lender, the report said, thus securing rights to bid
using its debt holdings.
    Sixth Street could seek to acquire Bed Bath & Beyond's baby
gear chain Buybuy Baby or all of the company's assets out of
bankruptcy, the report added. 
    Bed Bath earlier this week reached a deal with Overstock.com
 OSTK.O  where the online retailer would buy some of its assets,
including intellectual property, business data, rights to mobile
applications, for $21.5 million.

 (Reporting by Deborah Sophia in Bengaluru; Editing by Maju
Samuel)
 ((DeborahMary.Sophia@thomsonreuters.com;))