Bed Bath & Beyond Discussing Bankruptcy Loan With Lenders
After suffering major losses last quarter and alluding to a potential bankruptcy filing, it appears the end may be a lot closer for Bed Bath & Beyond Inc. (NASDAQ: BBBY).
As first reported by Bloomberg which cited individuals familiar with the matter, the home goods retailer is allegedly holding discussions with lenders to provide financing for the company while it undergoes bankruptcy proceedings. The talks centered around conducting a so-called stalking horse bid, whereby the lender would purchase either all, or a portion, of BBBY’s assets during bankruptcy. The people mentioned that discussions are still in the preliminary stage, and term details are subject to change.
BBBY— once the retail investors’ darling, initially requested a five-day extension to file its third quarter fiscal 2022 earnings, citing poorer than expected performance. Preliminary results showed the retailer’s net sales came in at only $1.26 billion, substantially lower than the $1.88 billion reported the same period one year ago. Even worse, though, BBBY’s net losses hit an astounding $393 million, marking the seventh consecutive quarterly loss.
Given the awful financial performance, “the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern,” read an excerpt from its statement last week. BBBY at the time hinted that a bankruptcy proceeding may soon be in the works.
Bed Bath & Beyond last traded at $5.24 on the Nasdaq.
Information for this briefing was found via Bloomberg and BBBY. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.