Bed Bath & Beyond Reportedly Selling Assets to Private Equity Firm

Bed Bath & Beyond Selling assets Sycamore Partners, a private equity firm, ahead of a Possible bankruptcy filingThe New York Times reported Friday

Alongside other key assets, the retailer’s Buy Buy Baby stores will reportedly be cut free after showing another dip in sales over the third quarter, according to the article.

The Union, New Jersey-based firm had previously considered selling its Buy Buy Baby stores following shareholder pressure but decided to hold off in the hope that it could fetch a better price later on, Reuters reported.

Bed Bath & Beyond secured a loan of $375 million from the company’s buybuy Baby Chain, which sells products to infants and toddlers.

BED BATH & BEYOND BANCRUPTCY COULD HAPPEN ‘THIS MONTH’

Cherry Hill, N.J. Jan. 8, 2023. (Fox News)

FOX Business was informed Friday by a spokesperson for Bed Bath & Beyond. “As is our practice, we do not comment on speculation of this nature.”

“We remain committed to updating our key stakeholders as we collectively work to execute our near- and long-term goals for the future,” According to the spokesperson.

However, Sycamore Equity Group, a New York-based equity group, declined to comment on the possible sale. Sycamore is an investor in retailers and consumer goods businesses. The takeover of Kohl’s Corp, a department store chain, was a major news story last year.

BED BATH & BEYOND FOLLOWING ‘MEME PHENOMENON’: CAN IT BE ENOUGH FOR BANKRUPTCY TO BE AVOIDED?

Cherry Hill, N.J.: Bed bath and Beyond store, Jan. 8, 20,23 (Fox News)

After announcing last week that it was considering bankruptcy as it struggles with its cash pile, the troubled retailer of home goods posted a larger-than-expected quarterly loss on Tuesday.

The fiscal third quarter loss, which ended on Nov. 26, was $393m more than the $276.4m it earned a year ago. It also included a $100.7million impairment charge which indicated that the inventory’s value was lower than its initial estimates.

Wall Street had estimated a loss of $2.23 per share. The retailer reported an adjusted loss at $3.65 per share.

The retailer’s cash and cash equivalents fell steeply to $153.5million, from $509million. This makes it difficult to acquire more merchandise.

Net sales decreased 33% to $1.26 Billion

Placer.ai data shows that foot traffic declined 23.1% between November and the previous year.

Inventory dropped by quarter to $1.44 trillion in the third quarter after Wild Sage, a retailer that owns Wild Sage brands, was forced to discontinue some of its brands and offered huge Black Friday discounts to sell merchandise.

Despite ongoing rumors to the contrary, shares for Bed Bath & Beyond exploded last week. They jumped 248% over the past five days. traders began shorting Stock

This report was compiled by Reuters

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