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UNION, N.J. — Bed Bath & Beyond Inc. said Sunday that it had filed for Chapter 11 bankruptcy protection and plans 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. It plans to keep paying employees while maintaining customer programs and honoring obligations to critical vendors.
“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,” Bed Bath & Beyone CEO Sue Gove said. “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.”
Bed Bath & Beyond has started a liquidation sale, but the company said it intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets. The company said 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. The company said it 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.
