Chain Bed Bath & Beyond files for Chapter 11 bankruptcyUSA in court in New Jersey, where the company is headquartered.
The decision came after years of difficulty paying off outstanding debts and financing its operations, but with the intention of satisfying its suppliers and employees, the company said in a statement.
Bed Bath & Beyond Inc. announced today that the store and some of its subsidiaries have filed voluntary petitions for assistance under Chapter 11 of the United States Bankruptcy Code. in the United States Bankruptcy Court for the District of New Jersey,” the company said. It is to effect an orderly liquidation of its businesses while conducting a limited marketing process to draw attention to one or more sales of some or all of its assets.
The company said in a statement that it has received a commitment from investment firm Sixth Street Specialty Lending to secure $240 million in funding, allowing them to keep their stores and web pages open in the process.
The company has 360 Bed Bath & Beyond stores and 120 BABY stores in New Jersey, which are sold on a buy-buy basis.
“Millions of customers have trusted us at the most important milestones of their lives, from going to university to getting married, moving to a new home and having a baby,” recalls President and CEO Sue Gove, who promised they will continue to work to maximize the benefits for all shareholders.
Retail chain sales plummeted last year and the company found it difficult to refinance debts it could not repay.
The firm has also experienced strong fluctuations in the price of its shares, becoming one of the favorite bets of many small investors and speculators who coordinate their activities on Internet forums.
Last February, he announced that he was going to sell about $1 billion worth of shares to try to avoid bankruptcy. He added that he plans to close about 150 stores, which, given previously released figures, would mean closing a total of 400 stores, almost half of what he had a year ago.
Your financial problems have dragged on since the start of the covid-19 pandemic. and they are believed to have caused the suicide of its CFO last September, Venezuelan Gustavo Arnal, who threw himself into the street from the 18th floor of his Manhattan apartment.
Among the firm’s difficulties were a shortage of buyers in both physical stores and online sales, supply issues that made it difficult to replace some items, and, most seriously, an inability to refinance its debt.
CNBC explained last January that the company was accumulating debt with different maturities – in 2024, ’34 and ’44 – and lost much of its liquidity, only partly covering those payments.
According to EFE
Source: La Opinion
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