Bed Bath & Beyond's efforts to find buyer stalled - Bloomberg News
Reuters
Published Jan 27, 2023 01:01PM ET
Updated Jan 27, 2023 04:20PM ET
(Reuters) -Bed Bath & Beyond Inc's efforts to find a buyer ahead of a likely bankruptcy filing have stalled, Bloomberg News reported on Friday, citing people with knowledge of the matter.
The troubled home goods retailer is preparing to file for Chapter 11 bankruptcy protection imminently, likely without a bidder in place for its assets including the valuable buybuy Baby chain, the report added.
However, talks are ongoing and a buyer could still emerge, according to the report.
Bed Bath & Beyond (NASDAQ:BBBY) said it does not "comment on speculation."
"As we consider all paths and strategic alternatives, we continue to work with our advisors and implement actions to manage our business as efficiently as possible," the company said in an emailed statement.
S&P Global (NYSE:SPGI) on Friday downgraded Bed Bath & Beyond's credit rating to "D" from "CC", saying it expects the retailer to pursue a debt restructuring.
The Union, New Jersey-based company earlier this month said it was considering a range of options, including declaring bankruptcy, after struggling with plunging sales and widening losses.
The company had enlisted consulting firm AlixPartners LLP, along with restructuring lawyers at Kirkland & Ellis LLP and investment bankers at Lazard (NYSE:LAZ) Ltd to help advise on options for addressing its financial woes, Reuters had reported.
Bed Bath & Beyond said on Thursday it received a loan default notice from JPMorgan Chase (NYSE:JPM) Bank N.A., adding it did not have sufficient resources to repay the amounts under its credit facilities.
The company will consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code, it said on Thursday.
The New York Times reported earlier this month that Bed Bath & Beyond was in talks with private equity firm Sycamore Partners for the sale of its assets, while CNBC reported Authentic Brands was also looking at the retailer.
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Written By: Reuters
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