NEW YORK, Jan. 30 (Reuters) – Bed Bath and Beyond Inc (BBBY.O) It is preparing to file for bankruptcy protection as soon as this week, and liquidators have lined up to close additional stores unless a buyer shows up at the last minute, four people familiar with the matter said Monday.
Another person familiar with the matter said the timing of any bankruptcy filing was variable on Monday evening, as advisers to the US home goods retailer held meetings to explore any remaining options to avoid it.
Two of the people said Bed Bath & Beyond is negotiating a loan to help it get through bankruptcy proceedings, with investment firm Sixth Street in talks to provide some financing. The company has loaned Bed Bath & Beyond 375 million dollars last year.
Two of the people said the chain, which was once considered a killer category in household goods like dinnerware and small appliances, has lined up liquidators who are preparing to close store sales that could launch as soon as this weekend.
The people spoke on condition of anonymity because the conversations were not public.
The chain said it would close 87 Bed Bath & Beyond stores and five Buybuy BABY stores, in addition to the 150 closures it announced last year. It’s also closing the Harmon chain of health and beauty sales.
People warned that a last-minute buyer might show up for the chain, or it could still strike a deal for its brands like buybuy BABY. Potential buyers sometimes wait until the company has filed for bankruptcy before agreeing to purchase the assets, in the hope of negotiating more favorable terms.
Bed Bath & Beyond said in a statement to Reuters that it continued to work with its advisors to consider “multiple paths” but declined to comment on any bankruptcy planning.
The company said earlier that it is considering a range of options to address the drop in sales, including selling assets, increasing financing and declaring bankruptcy.
Sixth Street declined to comment.
Bed Bath & Beyond said last week rednecks on a loan, bringing him closer to bankruptcy. Sources also told Reuters that Bed Bath and Beyond is looking into the matter Skip debt payments Due Feb. 1, it’s a typical step distressed companies take to conserve cash.
Retailers in distress often decide to file for bankruptcy protection after the holiday season to take advantage of the cash cushion provided by recent sales.
Toys R Us went into liquidation in March 2018 in one of the largest failures yet for a specialty retailer.
As of February 2022, Bed Bath & Beyond had 953 locations, including buybuy BABY.
Bed Bath & Beyond was for years considered the go-to shopping destination for couples recording weddings and planning new babies, but it lost ground when it tried to expand into store brands.
Since then, the retailer’s management has reversed course and aimed to bring in shoppers of national brands who know its product range. But the strategy has not gained traction with shoppers.
Earlier this month, the company raised doubts about its ability to continue as a product Cares about She said she would cut jobs.
bed bath behind I mentioned a loss Of about $393 million, after sales fell 33% for the quarter ended Nov. 26.
(Reporting by Jessica DiNapoli and Mike Spector) Editing by Cynthia Osterman and Jamie Fried
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