Bed Bath & Beyond files for Chapter 11 bankruptcy after a long struggle
- In February, the beleaguered retailer planned to raise about $1 billion by offering preferred stock and warrants to avoid bankruptcy.
Bed Bath & Beyond Inc. filed for Chapter 11 bankruptcy protection Sunday after the home goods retailer failed to secure the funds to stay afloat.
The Union, NJ-based home goods retailer has filed for bankruptcy in the New Jersey District Court, listing its assets and liabilities estimated to be in the range of $1 billion and $10 billion, according to a court filing.
Bed Bath & Beyond said it received a pledge of about $240 million in debtor financing from Sixth Street Specialty Lending Inc, according to a separate statement.
Bed Bath & Beyond is said to be set for bankruptcy by the end of the week
The company added that 360 Bed Bath & Beyond and 120 buybuy BABY stores and locations will remain open and will continue to serve customers as it begins efforts to close its retail locations.
In February, the beleaguered retailer planned to raise about $1 billion by offering preferred stock and warrants to avoid bankruptcy.
The company was able to raise $360 million from the complex deal to help it pay off loan defaults and interest payments on old bonds.
But BedPath closed the deal in late March and announced plans to sell $300 million worth of its stock while again warning it might have to file for bankruptcy if it couldn’t secure the funds.
The company once thrived in the midst of the pandemic and controlled 1,500 stores across the US, before experiencing several turbulent years.
Bed Bath & Beyond CFO Gustavo Arnal, 52, committed suicide in September 2022
The New Jersey-based home goods retailer Union, which became famous in the 1990s as a shopping destination for couples registering weddings and planning new babies, has seen declining demand in recent years as its business strategy of selling more store-branded products has fizzled.
Moves last year to abandon that strategy, and bring in more national brands that shoppers identify with, showed no signs of working, as the company reported a loss of about $393 million after sales fell 33% for the quarter ended Nov. 26.
In January, the company cast doubt on its ability to continue as a going concern just months after announcing more than $500 million in new financing, as well as job cuts and closing 150 stores.
Arnall, right, jumped to his death from the 18th floor of Manhattan’s Jenga Tower — two days after the company announced plans to lay off thousands of employees and close 150 stores.
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 had ceased operations. The Canadian division that operates 54 Bed Bath & amp; OUT OF STORES AND 11 BUYBUY BABY STORE, PINCHING, REGISTRATION IS PUBLISHED ON THE WEB SITE OF Alvarez & Show Marsal.
Bid Path 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 urged shareholders earlier in April to approve the split saying that if the plan fails, bankruptcy It will be soon.