Bloodbath and Beyond
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Bed Bath & Beyond Filed for Bankruptcy protection to wind down its business after years of losses and failed turnaround plans left the once-powerful retailer short of cash.
The company had warned of a potential bankruptcy for months. It needed a $375 million loan to get through the holidays. It struck an unusual $1 billion financing deal with a hedge fund in February to put off a bankruptcy filing, then scrapped the deal and tried this month to raise $300 million from other investors.
None of the moves were enough. Nor were efforts to stem losses by closing hundreds of stores. Sales evaporated and its stock price tumbled well below $1 in recent weeks, as the rescue efforts dimmed.
The retailer filed for chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court in Newark, N.J., and said it expects to close all of its 360 Bed Bath & Beyond and 120 Buybuy Baby retail locations eventually. Top lender Sixth Street Partners has put up $240 million in financing to keep Bed Bath & Beyond operating through the liquidation process, the company said.
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I just got an email from them, pretty much stating the same around the Chapter 11. Strange since I was just in the store yesterday, looking for some white washcloths, they had none. Went next door to Target and picked some up. I hadn't heard anything prior and was wondering why the store had limited selections out but I guess this explains it.
