The company has received a commitment of $240 million in debtor-in-possession financing.
Bed, Bath & Beyond, one of America's largest home goods retailers, has filed for bankruptcy. 360 Bed, Bath & Beyond stores and 120 Buybuy Baby stores of the same name will permanently close after a sale of the retailer's inventory is completed.
"Bed Bath & Beyond Inc. today announced that it and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets." the company said.
To facilitate this process, the Company has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending, Inc. Following court approval, the Company expects this financing to provide the necessary liquidity to support operations during the Chapter 11 process.
Bed, Bath & Beyond and Buybuy Baby stores are scheduled for auction. The bankruptcy filing allows Bed Bath & Beyond to hold sales and seek buyers for its remaining assets. At the end of 2022, the retailer's assets were valued at about $4.4 billion and its debts at $5.2 billion.
Bed Bath & Beyond was founded in 1971 and got its original name in 1987. The company remained profitable from 1992 when the retailer went public until 2019. The retailer's sales began to decline in 2019 amid an exodus of shoppers online. In January 2023, the company warned that it was at risk of bankruptcy amid a severe drop in sales.
For decades, Bed Bath & Beyond set the standard across the home goods sector and held its position through many different economic cycles and alongside a continuously evolving customer. In late 2022, the Company initiated a significant turnaround plan to reset foundational elements of its operational and financial positioning.
The statement also notes that the company strategically manages inventory to preserve value: In the event of a successful sale, the Company will forego the store closings necessary to complete the transaction. The Company believes that this dual-route will maximize value."
Bed Bath & Beyond is a chain of retail stores specializing in selling various home goods, such as bedding, bath towels, kitchen appliances, home decor, and much more. In recent years, Bed Bath & Beyond has expanded its offerings to include a wider variety of products, including baby gear, outdoor furniture, and pet supplies. They have also launched several house brands, such as Harmon Face Values, Cost Plus World Market, and buybuy BABY.