Bed Bath & Beyond Inc (NASDAQ: BBBY) just announced to have filed for Chapter 11 bankruptcy protection after none of its efforts in recent months raised capital needed to continue operations.
Here’s what we know so far
Sixth Street is lending roughly $240 million in “DIP” (debtor-in-possession financing) for the big box retailer to finance operations through the process. The press release reads:
Company intends to uphold its commitment to customers, employees, and partners, including continued payment of wages and benefits, maintaining customer programmes, and honoring obligations to vendors.
Last month, the Nasdaq-listed firm reported preliminary results for its fourth quarter that projected a 41% decline in sales to $1.2 billion on continued operating losses.
Bed Bath & Beyond shares are trading for less than a dollar since late March.
Share sales failed to raise enough capital
According to its filings with the New Jersey District Court, Bed Bath & Beyond had about $5.2 billion in debt and $4.4 billion in assets as of the last November. Its press release also confirmed today:
Company has sought authority to market Bed Bath & Beyond and buybuy BABY as part of an auction and is also strategically managing inventory to preserve value.
The Union-headquartered firm had first warned of potential bankruptcy in January.
In subsequent months, its management resorted to several financial maneuvers to keep the company alive including selling over a million shares that raised $48.5 million only (read more). The meme stock had once traded at a high of $35 a share.
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