Bed Bath & Beyond Files for Chapter 11 Bankruptcy with $5.2 Billion in Debt, Receives $240 Million in Financing to Support Operations
27th April 2023 | Hong Kong
Bed Bath & Beyond has filed for Chapter 11 bankruptcy (23/4/23) with $5.2 billion in debt, and will receive $240 million in financing to support operations. Bed Bath & Beyond was founded in 1971 by Warren Eisenberg and Leonard Feinstein, selling home textiles, housewares & decorative home accessories. Bed Bath & Beyond grew to become one of United States largest retailer and a Fortune 500 company, and went public in 1992 on Nasdaq. In August 2022, a 20-year-old University of Southern California student Jake Freeman made $110 million on 2021 meme stock Bed Bath & Beyond, with initial capital of around $25 million from friends & family. More info on Bed Bath & Beyond Chapter 11 Bankruptcy below.
” Bed Bath & Beyond Files for Chapter 11 Bankruptcy with $5.2 Billion in Debt, Receives $240 Million in Financing to Support Operations “
Bed Bath & Beyond Files for Chapter 11 Bankruptcy with $5.2 Billion in Debt, Receives $240 Million in Financing to Support Operations
- Bed Bath & Beyond and buybuy BABY Stores and Websites are Open and Serving Customers as Wind Down Commences
- $240 Million Debtor-in-Possession Financing Secured to Support Ongoing Operations and Chapter 11 Process
23rd April 2023 – Bed Bath & Beyond Inc. (Nasdaq: BBBY) today announced that it and certain of its subsidiaries (collectively, “the Company”) filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) in the United States Bankruptcy Court for the District of New Jersey (the “Court”) to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.
To facilitate this process, the Company has received a commitment of approximately $240 million in debtor-in-possession financing (“DIP”) from Sixth Street Specialty Lending, Inc. Following court approval, the Company expects this financing to provide the necessary liquidity to support operations during the Chapter 11 process.
The Company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the Company begins its efforts to effectuate the closure of its retail locations. Through the filing of customary motions with the Court, the Company intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors.
Sue Gove, President & CEO of Bed Bath & Beyond Inc. said, “Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby. Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY. We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders.”
For decades, Bed Bath & Beyond set the standard across the home goods sector and held its position through many different economic cycles and alongside a continuously evolving customer. In late 2022, the Company initiated a significant turnaround plan to reset foundational elements of its operational and financial positioning to better serve customers, employees, and supplier partners. Actions have been underway to improve merchandise assortment, streamline supply chain, and optimize its store footprint.
While the Company has commenced a liquidation sale, Bed Bath & Beyond Inc. intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets. The Company has filed motions with the Court seeking authority to market Bed Bath & Beyond and buybuy BABY as part of an auction pursuant to section 363 of the Bankruptcy Code. Alongside these efforts, the Company is also strategically managing inventory to preserve value. In the event of a successful sale, the Company will pivot away from any store closings needed to implement a transaction. The Company believes this dual-path process will best maximize value.
Bed Bath & Beyond
Bed Bath & Beyond Inc. and subsidiaries (the “Company”) is an omnichannel retailer that makes it easy for our customers to feel at home. The Company sells a wide assortment of merchandise primarily in the Home and Baby markets. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.
20 Year-Old University of Southern California Student Makes $110 Million on Bed Bath & Beyond Stock Trade, $25 Million Capital from Friends & Family
18th August 2022 – A 20-year-old University of Southern California student Jake Freeman had made $110 million on 2021 meme stock Bed Bath & Beyond, with initial capital of around $25 million from friends & family. Together with his uncle Dr Scott Freeman, they had been investing for years.
A Timeline on 20 year old USC student Jake Freeman’s investment:
A Timeline on 20 year old USC student Jake Freeman’s investment in $BBBY
— JC Oviedo (@JCOviedo6) August 17, 2022
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