Bed Bath & Beyond Inc.’s efforts to find a buyer in bankruptcy have stalled, potentially putting the retailer on a path toward liquidation as it faces a Chapter 11 filing, according to people with knowledge of the matter.
(Bloomberg) — Bed Bath & Beyond Inc.’s efforts to find a buyer in bankruptcy have stalled, potentially putting the retailer on a path toward liquidation as it faces a Chapter 11 filing, according to people with knowledge of the matter.
The retailer is preparing to file for bankruptcy protection imminently, likely without a bidder in place for assets including its Buy Buy Baby brand, which is viewed by some as its most valuable chain, said the people, who asked not to be named discussing private company plans. They added that talks are ongoing and a buyer could still emerge.
Chapter 11 bankruptcy filings allow a company to continue operating while it hunts for a buyer or attempts to reorganize. A representative for Bed Bath & Beyond said in a statement that “we continue to work with our advisors and implement actions to manage our business as efficiently as possible as we consider all paths and strategic alternatives.”
The Union, New Jersey-based retailer spiraled into distress following years of disappointing sales, strategic missteps, and a turnaround effort that came too late. Its troubles quickened when failure to pay suppliers crippled inventory as vendor shipments slowed. On Thursday, the company said it received a default notice tied to some credit lines.
Bed Bath & Beyond was seeking bids from third parties who would agree to buy some or all of the company’s assets in bankruptcy, Bloomberg previously reported.
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