After attempting to stay out of bankruptcy for several months, struggling retailer Bed Bath & Beyond Inc. (Union, N.J.) has thrown in the towel and filed for Chapter 11 bankruptcy protection. As a result, the retailer expects to close its 360 Bed Bath & Beyond and 120 buybuy BABY stores after putting them through liquidation sales.
To facilitate this process, the company has received a commitment of about $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.
“We deeply appreciate our associates, customers, partners and the communities we serve, and we remain steadfastly determined to serve them throughout this process,” said President and CEO Sue Gove. “We will continue working diligently to maximize value for the benefit of all stakeholders.”
While the company has commenced liquidation sales, Bed Bath & Beyond intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets. (As the chain has been downsizing its store fleet in recent months, it’s found that many of its high-profile locations are in demand by other retailers.) The company has retained Hilco Merchant Resources LLC to assist with inventory sales.