Bed Bath & Beyond and buybuy BABY
Stores and Websites are Open and Serving Customers as Wind
Down Commences
$240 Million
Debtor-in-Possession Financing Secured to Support Ongoing
Operations and Chapter 11 Process
UNION,
N.J., April 23, 2023 /PRNewswire/ -- Bed
Bath & Beyond Inc. (Nasdaq: BBBY) today announced that it and
certain of its subsidiaries (collectively, "the Company") filed
voluntary petitions for relief under Chapter 11 of the U.S.
Bankruptcy Code ("Chapter 11") in the
United States Bankruptcy Court for the District of
New Jersey (the "Court") 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 ("DIP") from Sixth
Street Specialty Lending, Inc. 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.
Sue Gove, President & CEO of
Bed Bath & Beyond Inc. said, "Millions of customers have
trusted us through the most important milestones in their lives –
from going to college to getting married, settling into a new home
to having a baby. Our teams have worked with incredible purpose to
support and strengthen our beloved banners, Bed Bath & Beyond
and buybuy BABY. We deeply appreciate our associates, customers,
partners, and the communities we serve, and we remain steadfastly
determined to serve them throughout this process. We will continue
working diligently to maximize value for the benefit of all
stakeholders."
For decades, Bed Bath & Beyond set the standard across the
home goods sector and held its position through many different
economic cycles and alongside a continuously evolving customer. In
late 2022, the Company initiated a significant turnaround
plan to reset foundational elements of its operational and
financial positioning to better serve customers, employees, and
supplier partners. Actions have been underway to improve
merchandise assortment, streamline supply chain, and optimize its
store footprint.
While the Company has commenced a liquidation sale, Bed Bath
& Beyond Inc. 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.
Additional information is available at
https://restructuring.ra.kroll.com/bbby. Stakeholders with
questions can contact the Company's Claims Agent, Kroll LLC, at BBBYInfo@ra.kroll.com, (833)
570-5355, or (646) 440-4806 if calling from outside the U.S. or
Canada.
Kirkland & Ellis LLP and Cole Schotz
P.C. are serving as legal counsel, Lazard Frères & Co.
LLC is serving as investment banker, and AlixPartners LLP is
serving as financial advisor. Bed Bath & Beyond Inc. has
retained Hilco Merchant Resources LLC to assist with inventory
sales.
About the Company
Bed Bath & Beyond Inc. and
subsidiaries (the "Company") is an omnichannel retailer that makes
it easy for our customers to feel at home. The Company sells a wide
assortment of merchandise primarily in the Home and Baby markets.
Additionally, the Company is a partner in a joint venture which
operates retail stores in Mexico
under the name Bed Bath & Beyond.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains certain "forward-looking
statements." All statements other than statements of historical
fact are "forward-looking" statements for purposes of the U.S.
federal and state securities laws. These statements may be
identified by the use of forward-looking terminology such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "might," "our vision," "plan," "potential,"
"preliminary," "predict," "should," "will," or "would" or the
negative thereof or other variations thereof or comparable
terminology. These forward-looking statements are subject to a
number of factors and uncertainties that could cause the Company's
actual results to differ materially from those expressed in or
contemplated by the forward-looking statements. Such factors
include, but are not limited to: risks attendant to the bankruptcy
process, including the Company's ability to obtain court approval
from the Court with respect to motions or other requests made
to the Court throughout the course of Chapter 11, including with
respect the DIP; the effects of Chapter 11, including increased
legal and other professional costs necessary to execute the
Company's wind down, on the Company's liquidity (including the
availability of operating capital during the pendency of Chapter
11); the effects of Chapter 11 on the interests of various
constituents and financial stakeholders; the length of time that
the Company will operate under Chapter 11 protection and the
continued availability of operating capital during the pendency of
Chapter 11; objections to the Company's wind down process, the DIP,
or other pleadings filed that could protract Chapter 11; risks
associated with third-party motions in Chapter 11; Court rulings in
the Chapter 11 and the outcome of Chapter 11 in general; the
Company's ability to comply with the restrictions imposed by the
terms and conditions of the DIP and other financing arrangements;
employee attrition and the Company's ability to retain senior
management and other key personnel due to the distractions and
uncertainties; the impact and timing of any cost-savings measures
and related local law requirements in various jurisdictions; the
impact of litigation and regulatory proceedings; and other factors
discussed in the Company's Annual Report on Form10-K and subsequent
quarterly reports on Form10-Q filed with the SEC. These risks and
uncertainties may cause the Company's actual results, performance,
liquidity or achievements to differ materially from any future
results, performance, liquidity or achievements expressed or
implied by these forward-looking statements. For a further list and
description of such risks and uncertainties, please refer to the
Company's filings with the SEC that are available
at www.sec.gov. The Company cautions you that the list of
important factors included in the Company's SEC filings may not
contain all of the material factors that are important to you. In
addition, in light of these risks and uncertainties, the matters
referred to in the forward-looking statements contained in this
report may not in fact occur. The Company undertakes no obligation
to publicly update or revise any forward-looking statement,
including the Projections, as a result of new information, future
events or otherwise, except as otherwise required by law.
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SOURCE Bed Bath & Beyond Inc.
