Bed Bath & Beyond Begins Talks on Bankruptcy Loan, Takeover

(Bloomberg) — Bed Bath & Beyond Inc. is speaking with potential lenders that may finance the corporate during bankruptcy proceedings, in line with individuals with knowledge of the matter.

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The talks include the potential for a so-called stalking horse bid, through which the party would also offer to purchase some or all the company’s assets in bankruptcy, said the people, who asked to not be identified discussing private negotiations. Talks are within the early stages and terms could change, the people said.

Union, Latest Jersey-based Bed Bath & Beyond has seen losses spin uncontrolled despite pursuing a turnaround of the flailing business. In an earnings release Jan. 9, it said its net loss widened to $393 million within the three months ended Nov. 26 and said it was considering “all strategic alternatives” to get back on financial track.

Last week, the retailer said those options included the opportunity of bankruptcy, a warning that got here after it withdrew a bond-swap offering.

Bed Bath & Beyond has been getting advice from law firm Kirkland & Ellis and investment bank Lazard Ltd.

Representatives for Lazard, Bed Bath & Beyond and Kirkland & Ellis didn’t immediately comment.

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