Bed, Bath & Beyond, a home goods retail chain, filed for bankruptcy on Sunday, April 23. The company's 360 Bed, Bath & Beyond stores and 120 Buybuy Baby stores will remain open to sell off remaining inventory, after which they will close permanently, according to a statement on the retailer's website.
To finance the bankruptcy process, investment firm Sixth Street has agreed to provide Bed, Bath & Beyond with around $240 million in collateral. Bed, Bath & Beyond has stated that it plans to continue paying employee wages, supporting customer programs, and fulfilling obligations to suppliers. The stores will be put up for auction, according to RBK.
Filing for bankruptcy allows Bed, Bath & Beyond to conduct sales and search for buyers for its remaining assets. However, shareholders are likely to lose out as the bankruptcy process prioritizes repaying Bed, Bath & Beyond's debt rather than serving the interests of shareholders. As of the end of November, Bed, Bath & Beyond's assets were valued at around $4.4 billion and debts at $5.2 billion, CNBC reports.