Bed Bath & Beyond Mulls Asset Sale, Sixth Street Bankruptcy Loan

Bed Bath & Beyond Inc. is considering selling assets and intellectual property as part of a potential bankruptcy filing that could come as soon as this weekend, according to people with knowledge of the situation.

(Bloomberg) — Bed Bath & Beyond Inc. is considering selling assets and intellectual property as part of a potential bankruptcy filing that could come as soon as this weekend, according to people with knowledge of the situation.

The retailer is also looking to line up funding from Sixth Street Partners to support its operations through Chapter 11 proceedings, said the people, who asked not to be identified because the details are private. Talks remain fluid and plans could still change, the people said.

A representative for Bed Bath & Beyond didn’t immediately respond to requests for comment after regular business hours while Sixth Street declined to comment.

The Union, New Jersey-based retailer has an April 26 deadline by which it sought to raise another $300 million from equity investors.

Sixth Street provided a rescue loan to the company last year in exchange for a first claim on its Buybuy Baby unit and other assets. The infant brand is considered Bed Bath & Beyond’s crown jewel, though sales slumped during the third quarter.

The retailer has been shuttering hundreds of stores across the US, running big sales to clear out merchandise and laying off thousands of employees. It has said it’s on pace to have 360 Bed Bath & Beyond stores by the end of April and 120 Buybuy Baby shops. 

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