Bed Bath & Beyond looking for capital infusion, buyers ahead of expected bankruptcy filing

Bed Bath & Beyond is in discussions with lenders and prospective buyers as it is working to keep its business afloat amid an expected bankruptcy filing, according to news reports. The retail-store chain is in the midst of a sale process. It is hoping to find a buyer who is going to keep the doors open for both of its major chains, its namesake banner and Buybuy Baby. One potential buyer of Bed Bath is the private equity company Sycamore Partners, as per sources familiar with the discussions. Sycamore is particularly interested in purchasing the Buybuy Baby, which has outperformed the broader company. Bed Bath has also been seeking a lender to provide financing that would allow the company to keep going in case it has to file for bankruptcy protection in the upcoming weeks, as per the sources. Bed Bath received $375 million in new funding last year from the lender Sixth Street Partners. Sixth Street Partners has earlier offered financing to other retailers such as Designer Brands and J.C. Penney. The sources said that the Sixth Street’s facility could be converted into bankruptcy financing, or the lender or others could turn their debt to equity and become the owner of Bed Bath. As per a spokeswoman of Bed Bath, the firm doesn’t comment on specific relationships. She added that however, the retailer has been working with strategic advisers to evaluate all paths for regaining market share and enhancing liquidity. The spokeswoman said, “Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner.” Bed Bath had warned earlier this month that it may file for bankruptcy after its turnaround plans were not able to substantially boost sales and repair its balance sheet. The company saw net losses exceeding $1.12 billion for the first nine months of the fiscal year. In the recent months, it’s blown through its liquidity, carried a heavy debt load, and gone through strained relationships with its suppliers. The firm’s comparable sales went down 32 percent over year in the most recent fiscal quarter, ended 26 November. According to the leaders of the company, Bed Bath has had a harder time keeping shelves stocked. It is because the vendors changed payment terms or decided not to ship merchandise due to the financial challenges of the retailer. CNBC had reported last week that Bed Bath has started another round of layoffs in an attempt to further reduce the costs. The firm contained around 32,000 employees as of 26 February 2022 according to the public filings. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.