Feb 1, 2023
Bed Bath & Beyond Says It Missed Interest Payments on Bonds
(Bloomberg) -- Bed Bath & Beyond Inc., the financially strapped home-goods retailer, missed interest payments on its bonds, a week after receiving a default notice from lenders.
The retailer failed to make Feb. 1 payments on notes that total more than $1 billion, a spokeswoman said Wednesday in an emailed statement.
The default means Bed Bath & Beyond has entered a 30-day grace period, during which time it can still make the interest payments. The Wall Street Journal reported earlier on the missed payments.
The skipped payments are the latest sign of the retailer’s worsening financial situation. Bed Bath & Beyond is weighing various financial options, including the possibility of a Chapter 11 bankruptcy filing, which would allow the company to continue operating while it attempts to reorganize.
The company received a default notice from JPMorgan Chase & Co. last week, and warned it didn’t have enough funds to make payments.
In recent days, the retailer’s efforts to find a buyer in bankruptcy have stalled, Bloomberg News has reported, citing people with knowledge of the matter. That potentially puts the home-goods chain on a path toward liquidation.
The chain’s decline has been years in the making. It accelerated in recent months as suppliers grew increasingly concerned about the company’s future and demanded payments in advance.
“Multiple paths are being explored and we are determining our next steps carefully, and in a timely manner,” the spokeswoman said.
(Adds background on the bankruptcy process in fourth paragraph. An earlier version of this story corrected the day of the week in second paragraph.)
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