Bed Bath & Beyond, one of the first home improvement and home decor department stores in the United States, has filed for bankruptcy after years of low sales and losses and several failed plans to implement sweeping changes.
The iconic home improvement chain of the 1990s and 2000s filed its petition Sunday in New Jersey District Court, The company would sell its wares and then go out of business.
He estimated his assets and liabilities in the range of $1,000 million to $10,000 million. The action was taken after it failed to raise funds to stay afloat.
The Union, New Jersey-based company said in a statement it made the statement voluntarily “in order to conduct an orderly closure of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its resources.
The company said its 360 Bed Bath & Beyond and 120 Buy Buy Baby stores and websites will remain open and serve customers while “begins its efforts to effect closure of its businesses.”
The company also said it wants to honor its commitments to its customers, employees and partners. The chain added that it secured a funding pledge of approximately $240 million from Sixth Street Specialty Lending, Inc. so it can continue to operate during bankruptcy proceedings.
The filing comes as the company’s shares have fallen even as speculation about an impending bankruptcy filing has risen. Its economic performance has also deteriorated. In late March, it noted that preliminary results showed sales declines of between 40% and 50% at stores that have been open for at least a year for the quarter ended Feb. 25.
The company said in a filing with the Securities and Exchange Commission in late March that it planned to sell $300 million of stock to avoid filing for bankruptcy.
The home improvement store has issued multiple bankruptcy notices since the beginning of the year. In late January, it indicated in a filing to the government that it was in default on its loan payments and did not have the funds to pay off what it owed.
The default was forcing the company to consider various alternatives, including restructuring its debt in bankruptcy court, it added.
Source: Clarin
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