BNY Mellon is the retailer’s largest creditor, claiming $1.185 million. The group failed to secure financial survival.
It’s official. Bed, Bath & Beyon, a well-known North American housewares brand, has filed for bankruptcy, assuming that it can no longer meet its financial responsibilities.
The announcement on the company’s website reads: “Thank you to all of our loyal customers. We’ve made the difficult decision to begin spinning off our operations. Bed Bath & Beyond and Buy Buy stores and websites will continue to be available to our customers,” reads the information placed at the top of the page.
The company also left a link with all the details on what it entails filing for Chapter 11 of the US Bankruptcy Code, along with specific details on the restructuring process it will face.
In January, the company cast doubt on its ability to continue in business, just months after announcing more than $500 million in new financing, as well as job cuts and 150 store closures.
In February, the company, already in great financial difficulty, was preparing to raise $1 billion through an operation, an issuance of preferred stock and warrants to avoid bankruptcy.
What is certain is that the retailer ended up raising US$360 million just through the complex financing agreement, which also helped it pay off some loans and interest owed on major debt issues.
Creditors and debts
According to the company’s accounts, at the end of November it had assets of $4,401 million (about 4,000 million euros) and a total debt of $5,200 million, according to documents filed with New Jersey courts.
The number of creditors ranges from 25,001 to 50,000. The largest creditor is BNY Mellon which claims $1.185 million, behind Mall Personalization’s $11 million.
A total of 73 companies filed claims in the Bed, Bath & Beyond bankruptcy proceedings. The company’s Chief Financial Officer, Holly Eitlin, will take on the role of Responsible for Restructuring and Bankruptcy Management.
The company even received a bailout proposal from the Hudson Bay Capital Management Fund, which would contribute $1,000 million in financing, but the agreement did not materialize, and Bed, Bath & Beyond, after many attempts to ensure financial viability, ended up in bankruptcy. This Sunday.
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