This content was published on April 23, 2023 – 13:12
Washington, Apr 23 (EFE).- The American chain of household items and decoration Bed Bath & Beyond declared bankruptcy this Sunday, after years of difficulties to cover outstanding debts and finance its operations.
The company specified in a statement that it has received a commitment from the investment firm Sixth Street Specialty Lending to receive financing of 240 million dollars that will allow them to keep their stores and web pages open in this process.
The New Jersey company has 360 Bed Bath & Beyond stores and 120 buybuy BABYs.
“Millions of clients have trusted us throughout the most important milestones in their lives, from going to university to getting married, moving into a new home and having a baby,” recalled its president and CEO, Sue Gove, who promised that they will continue working to maximize the benefit of all shareholders.
Bed Bath & Beyond specified that the bankruptcy declaration has been made voluntarily to carry out an orderly liquidation of its businesses while carrying out “a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
The retail chain’s sales fell sharply last year and the company had found it difficult to refinance debts it was unable to satisfy.
The firm also experienced strong fluctuations in its stock price, becoming one of the favorite bets of many small investors and speculators who coordinate on Internet forums.
Last February it announced that it was going to sell approximately $1 billion worth of shares to try to avoid bankruptcy. He added that he planned to close some 150 stores, which after previously reported figures would mean closing a total of 400 stores, almost half of what he had a year ago.
Its financial problems drag on since the outbreak of the covid-19 pandemic and are considered to be the cause of the suicide of its financial director last September, the Venezuelan Gustavo Arnal, who threw himself into the street from the 18th floor of his apartment in Manhattan.
Among the firm’s difficulties were the shortage of customers both in physical stores and in online sales, supply problems that made it difficult for it to replace some merchandise and, most seriously, not having been able to refinance its debt.
The CNBC channel explained last January that the company had been accumulating debt with different maturities -in 2024, 34 and 44- and had lost a large part of its liquidity, only partially covering those payments. EFE
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2023-04-23 13:18:04
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