Bed Bath & Beyond is making ready to file for bankruptcy protection as quickly as this week and is within the means of closing extra shops until a last-minute purchaser could make a proposal, 4 individuals near the matter told Reuters on Tuesday.
Another particular person accustomed to the state of affairs stated the timing of any bankruptcy submitting was in flux Monday night because the retailer’s advisers met to discover any remaining choices to keep away from liquidation, in keeping with the report.
Bed Bath & Beyond is at present negotiating a mortgage to assist navigate bankruptcy proceedings, with the funding agency Sixth Street in talks to offer funding, two of the individuals stated. The agency loaned Bed Bath & Beyond $375 million final 12 months however declined to touch upon the present matter.
In addition to 150 closures introduced in 2022, the erstwhile retail big is now saying it can shut 87 extra Bed Bath & Beyond shops and 5 buybuy BABY shops. The firm can also be shutting down its well being and sweetness low cost chain Harmon.
In an announcement to Reuters, the corporate stated it’s working with its advisers to contemplate “a number of paths” however declined to touch upon any bankruptcy planning.
Last week, Bed Bath & Beyond stated it defaulted on a mortgage, bringing it nearer to bankruptcy. Sources additionally instructed Reuters the retailer is contemplating skipping debt funds due on Feb. 1.
For the quarter ending Nov. 26, Bed Bath & Beyond reported a lack of about $393 million after gross sales plunged 33%.
Net gross sales declined 33% to $1.259 billion, predominantly pushed by a comparable1 gross sales decline of 32%.
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Reuters contributed to this article.