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Bed Bath & Beyond Inc BBBY filed for Chapter 11 bankruptcy protection on Sunday, reports Reuters.
According to its court filing, the big box store filed for bankruptcy in the U.S. District Court in New Jersey, listing its estimated assets and liabilities in the range of $1 billion and $10 billion.
The company said it has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc, according to Reuters. It also said that the remaining 360 Bed Bath & Beyond and 120 buybuy BABY stores, along with the stores’ websites, will remain open as it begins the bankruptcy process.
Also Read: Why Bed Bath & Beyond Shares Are Getting Hammered
In August 2022, Bed Bath & Beyond announced it had “identified and commenced the closure of approximately 150 lower-producing Bed Bath & Beyond banner stores” as part of its strategic business review. The company shut down an additional 87 stores earlier this year.
According to a regulatory filing that was released in January, Bed Bath & Beyond said it did not have “sufficient resources to repay the amounts under the Credit Facilities.” It also reported a loss of about $393 million, after sales had plunged 33% during the quarter ending on Nov. 26, 2022.
In February, the company shut down its Canadian operations and filed its Canadian division for protection under the Companies Creditors Arrangement Act — Canada’s rough equivalent of a Chapter 11 bankruptcy. At the time, the Bed Bath & Beyond banner in Canada had total assets of about $427.4 million and total liabilities of approximately $342.8 million.
Read Next: Wedbush Maintains Underperform on Bed Bath & Beyond, Raises Price Target to $0.25
Photo: Shutterstock
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