Bed Bath & Beyond to Wind Down Operations

$240 Million Debtor-in-Possession Financing Secured to Support Ongoing Operations and Chapter 11 Process

On Apr 24, 2023

Union-based Bed Bath & Beyond Inc. announced yesterday that it filed for bankruptcy and will wind down its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.

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, Be Bath & Beyond expects this financing to provide the needed 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 closure process ensues. 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.”

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. It 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. Bed Bath & Beyond believes this dual-path process will best maximize value.

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