Bed Bath & Beyond making ready to file chapter as quickly as this week

Bed Bath & Beyond Inc is making ready to hunt chapter safety as quickly as this week, and has lined up liquidators to shut extra shops except a last-minute purchaser emerges, in keeping with sources.

The timing of any chapter submitting was in flux Monday night, with the US dwelling items retailer’s advisers locked in conferences exploring any remaining choices to keep away from it, one other individual accustomed to the matter mentioned.

Bed Bath & Beyond is negotiating a mortgage to assist it navigate chapter proceedings, with funding agency Sixth Street in talks to supply some funding, two of the folks mentioned. The agency loaned Bed Bath & Beyond $375 million final yr.

The chain, as soon as thought-about a class killer in dwelling items like dinnerware and small home equipment, has lined up liquidators who’re readying retailer closing gross sales that may very well be launched as quickly as this weekend.

The chain has mentioned it’s closing 87 Bed Bath & Beyond shops and 5 buybuy BABY shops, along with 150 closures introduced final yr. It can be shutting its well being and wonder low cost chain Harmon.

People accustomed to the matter cautioned {that a} last-minute purchaser for the chain might emerge, or it might nonetheless ink a deal for its manufacturers resembling buybuy BABY. Prospective patrons typically wait till an organization recordsdata for chapter earlier than agreeing to buy property, hoping to barter extra favorable phrases.

Bed Bath & Beyond mentioned in an announcement that it continued to work with its advisers to think about “multiple paths” however declined to touch upon any chapter planning.

The firm has beforehand mentioned it was exploring a spread of choices to handle plunging gross sales, together with promoting property, elevating financing and declaring chapter.

Sixth Street declined to remark.

Bed Bath & Beyond mentioned final week it defaulted on a mortgage, bringing it nearer to chapter. Sources have additionally mentioned that Bed Bath & Beyond is contemplating skipping debt funds due on Feb. 1, a typical transfer that distressed firms take to preserve money.

Retailers in misery usually determine to file for chapter safety after the vacation season to make the most of the money cushion supplied by current gross sales.

Toys R Us liquidated in March 2018 in one of many largest failures up to now of a specialty retailer.

As of February 2022, Bed Bath & Beyond had 953 areas, together with buybuy BABY.

Bed Bath & Beyond for years had been thought-about a go-to purchasing vacation spot for {couples} making wedding ceremony registries and planning for brand new infants, but it surely misplaced its footing when it tried to increase into retailer manufacturers.

The retailer’s administration has since reversed course and aimed to herald nationwide manufacturers buyers knew the chain for. But the technique has not gained traction with buyers.

Earlier this month, the corporate raised doubts about its skill to proceed as a going concern and mentioned it will reduce jobs.

Bed Bath & Beyond reported a lack of about $393 million after gross sales plunged 33 per cent for the quarter ending November 26.