Bed Bath & Beyond tries to restructure (again)
Bed Bath & Beyond on Wednesday confirmed details of its financial restructuring, store closures and layoffs.
Why it matters: This may be the cash-strapped company's last bite at the turnaround apple, lest it join onetime rival Linens 'n Things in the retail refuse bin.
Details: The retailer secured a $375 million loan from Sixth Street Partners and the expansion of its existing credit facility by around $125 million.
- A source familiar with the deal says that Sixth Street was one of six bidders for the high-yield loan, in a JPMorgan-led process, and adds that the debt deal isn't contingent on BBBY's plans to sell new shares.
- BBBY also said it plans to close 150 stores and lay off an additional 20% of its employees "across corporate and supply chain."
- The company adds that it completed a review of its buybuy BABY business, and that it's opting to hold onto the brand rather than put it up for sale.
The bottom line from Richard Collings, who co-authors the Axios Pro: Retail Deals newsletter: "The financing provides much-needed liquidity at the most important time of the year, assuring nervous vendors as the retailer stocks up for the holidays."