A “Store Closing” banner on a Bed Bath & Beyond retailer in Farmingdale, New York, on Friday, Jan. 6, 2023.
Johnny Milano | Bloomberg | Getty Images
Bed Bath & Beyond is bulking up its group of authorized advisors because the troubled retailer preps a possible chapter submitting that will happen in New Jersey within the coming weeks, in keeping with folks aware of the matter.
The firm has employed legislation agency Cole Schotz to help in a possible submitting within the U.S. Bankruptcy Court within the District of New Jersey, in keeping with the individuals who weren’t approved to talk publicly on the matter. The state of affairs stays fluid, nevertheless, and plans could change, the folks added.
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Bed Bath has been in discussions to nail down financing that will maintain it afloat if it had been to file for chapter, CNBC beforehand reported. The firm is also within the midst of a sale course of in hopes of protecting its namesake chain and Buybuy Baby business alive.
Still, the Union, New Jersey-based retailer has been shifting towards a chapter submitting in its residence state, an more and more common venue for Chapter 11 instances, the folks mentioned.
Earlier this week, fellow retailer Party City filed for Chapter 11 chapter safety with plans to restructure its stability sheet and transfer ahead with a smaller footprint of shops. That submitting was made within the U.S. Bankruptcy Court within the Southern District of Texas.
A Bed Bath spokeswoman mentioned the corporate would not touch upon hypothesis or particular relationships, saying solely that it has been working with advisors to regain market share and discover a number of paths.
“We have a team, internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger,” the spokeswoman mentioned in an announcement.
A consultant for Cole Schotz did not reply to requests for remark.
The retailer has been working with different advisors, together with Kirkland & Ellis, the legislation agency well-known for representing bankrupt corporations, because it navigates its monetary troubles. Kirkland & Ellis and Cole Schotz additionally function authorized advisors to crypto lender BlockFi, which filed for Chapter 11 safety within the New Jersey chapter courtroom.
Bed Bath additionally just lately employed consulting agency AlixPartners as one in all its advisors, changing Berkeley Research Group, CNBC beforehand reported.
Despite efforts to stave off touchdown in chapter safety, a submitting will possible happen within the weeks forward, the folks mentioned.
Earlier this month, Bed Bath warned of a looming chapter as its turnaround plans failed to enhance the business and its stability sheet deteriorated. The retailer is dealing with a hefty debt load, falling gross sales and widening losses.
On Thursday, Bed Bath mentioned it obtained a discover from the Nasdaq Stock Market that it was out of compliance after not submitting its quarterly earnings assertion on time. The firm mentioned it’s working to finalize its report and file it to regain compliance inside 60 days.