Bed Bath & Beyond files voluntary Chapter 11 petitions

Bed Bath & Beyond announced that it and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey 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 from Sixth Street Specialty Lending. 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 as the company begins its efforts to effectuate the closure of its retail locations. 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. While the company has commenced a liquidation sale, Bed Bath & Beyond intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets. The company 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. The company believes this dual-path process will best maximize value.