{"id":1826821,"date":"2023-01-28T07:05:46","date_gmt":"2023-01-28T12:05:46","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1826821"},"modified":"2023-01-28T07:06:55","modified_gmt":"2023-01-28T12:06:55","slug":"bed-bath-beyond-defaults-on-debt-payment-amid-bankruptcy-fears","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bed-bath-beyond-defaults-on-debt-payment-amid-bankruptcy-fears\/","title":{"rendered":"Bed Bath &amp; Beyond Defaults on Debt Payment Amid Bankruptcy Fears"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbed-bath-beyond-defaults-on-debt-payment-amid-bankruptcy-fears%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1826821&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/Bed-Bath-Beyond-1200x800-1.jpg\" class=\"ff-og-image-inserted\" alt=\"image\"   style=\"display:none\"><\/div>\n<p>Struggling\u00a0retailer <a href=\"https:\/\/www.theepochtimes.com\/t-bed-bath-beyond\">Bed Bath &#038; Beyond<\/a> It was warned that it does not have the funds to repay its debts and has defaulted with JPMorgan on its credit lines, triggering fears of a near-future. <a href=\"https:\/\/www.theepochtimes.com\/t-bankruptcy\">bankruptcy<\/a>.<\/p>\n<p>In a filing (<a href=\"https:\/\/bedbathandbeyond.gcs-web.com\/static-files\/6d5dc409-d879-4972-a3cf-d691890981c3\">pdf<\/a>) with the\u00a0U.S. Securities and Exchange Commission (SEC) on Jan. 26, the retailer, headed by\u00a0Sue Gove, said that it had received a\u00a0notice of acceleration and default interest from\u00a0JPMorgan Chase under its credit agreement with the financial institution.<\/p>\n<p>\u201cThe notice provides that as a result of the events of defaults that occurred on or around Jan. 13, 2023 and are continuing, which were among other things due to the company\u2019s failure to prepay an over-advance and satisfy a financial covenant, the administrative agent has determined to exercise certain rights and remedies available pursuant to the Amended Credit Agreement,\u201d\u00a0Bed Bath &#038; Beyond wrote.<\/p>\n<p>Those remedies include\u00a0Bed Bath &#038; Beyond paying the credit back \u201cimmediately,\u201d according to the filing.<\/p>\n<p>It goes on to note that, effective Jan. 25, 2023, all outstanding loans and obligations under the credit facilities shall bear interest at an additional default rate of 2 percent per annum.<\/p>\n<p>However, Bed Bath &#038; Beyond warned that\u00a0\u201cat this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.\u201d<\/p>\n<p>The company owes $550 million under its asset-backed loan with JP Morgan and $375 million to the investment firm and lender Sixth Street.<\/p>\n<p>The retailer also has\u00a0<a href=\"https:\/\/www.spglobal.com\/marketintelligence\/en\/mi\/research-analysis\/untying-the-knots-simplifying-corporate-actions-Oct22.html\" target=\"_blank\" rel=\"noopener\">$1.2 billion<\/a>\u00a0in unsecured notes\u2014which are deemed relatively high risk\u2014with maturity dates spread across 2024, 2034, and 2044, according to S&#038;P Global.<\/p>\n<h2>More Store Closures Announced<\/h2>\n<p>The company has said it is undertaking a number of actions in order to improve its financial position\u00a0and stabilize its results of operations, including\u00a0cutting costs, lowering capital expenditures, and reducing its store footprint, but stressed that the measures \u201cmay not be successful.\u201d<\/p>\n<p>It\u2019s also closing\u00a0stores and distribution centers.<\/p>\n<p>Earlier this month, the retailer <a href=\"https:\/\/www.theepochtimes.com\/more-bed-bath-beyond-stores-closing_4979989.html\">announced<\/a> more store closures\u00a0across the United States as it attempts to fend off\u00a0bankruptcy\u00a0amid mounting debts and declining sales.<\/p>\n<p>Around 120 of its\u00a0708 stores are shuttering across the states of Arizona, California, Florida,\u00a0Illinois,\u00a0Massachusetts,\u00a0North Carolina, Texas, and dozens more.<\/p>\n<p>According to CEO Sue Gove, the closures will allow the company to \u201c<a href=\"https:\/\/www.theepochtimes.com\/more-bed-bath-beyond-stores-closing_4979989.html\">allocate resources according to customer demand<\/a>\u201d and become more \u201cstreamlined\u201d as it adopts a \u201cmore focused infrastructure that reflects our current business.\u201d<\/p>\n<p>Like many retailers, Bed Bath &#038; Beyond has been battling with\u00a0tight inventory this past year, prompted in part by the supply-chain crisis. However, while numerous retailers have managed to somewhat recover, the New Jersey-headquartered company has also been dealing with additional\u00a0credit constraints, and increasing demands from vendors for earlier payments, which it said has made it harder to keep shelves stocked.<\/p>\n<p>The company posted\u00a0a net loss of\u00a0<a href=\"https:\/\/bedbathandbeyond.gcs-web.com\/node\/16786\/pdf\" target=\"_blank\" rel=\"noopener\">$393 million<\/a>\u00a0for the fiscal third quarter, more than the\u00a0$366 million net loss in the second quarter and up from\u00a0$276.4 million a year prior.\u00a0Analysts last week had anticipated a $386 million loss for the quarter.<\/p>\n<p>Earlier this month, the retailer warned there was \u201csubstantial doubt\u201d that it will be able to continue going and said it was looking into \u201call strategic alternatives\u201d to avoid going into bankruptcy, including restructuring or refinancing its debt, reducing or delaying business activities, and strategic initiatives, and selling assets, among other measures.<\/p>\n<p>The stock price of\u00a0Bed Bath &#038; Beyond plummeted following the SEC filing, and the stock is currently down more than 20 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Struggling\u00a0retailer Bed Bath &#038; Beyond It was warned that it does not have the funds to repay its debts and has defaulted with JPMorgan on its credit lines, triggering fears of a near-future. bankruptcy. In a filing (pdf) with the\u00a0U.S. Securities and Exchange Commission (SEC) on Jan. 26, the retailer, headed by\u00a0Sue Gove, said that &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1826824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[7740,12555,8398,5487,16789,4567,10848],"class_list":["post-1826821","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bankruptcy","tag-bath","tag-bed","tag-debt","tag-defaults","tag-fears","tag-payment"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1826821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1826821"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1826821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1826824"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1826821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1826821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1826821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}