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Bed Bath & Beyond Files for Chapter 11 Bankruptcy Protection

Bed Bath & Beyond Inc filed for Chapter 11 bankruptcy protection on Sunday. The home goods retailer could not secure the necessary funds to stay afloat, leading to this decision.

Bed Bath & Beyond store
Bed Bath & Beyond store

Assets and Liabilities in Court Filing

In a District of New Jersey court, the Union-based home goods retailer listed its estimated assets and liabilities in the range of $1 billion and $10 billion, according to the court filing.

Securing Debtor-in-Possession Financing

Bed Bath & Beyond (NASDAQ: BBBY) announced that it received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc, per a separate statement.

Retail Locations to Remain Operational

The company confirmed that its 360 Bed Bath & Beyond and 120 buy BABY stores and websites would continue operations and serve customers as it begins closing its retail locations.

Previous Attempts to Avoid Bankruptcy

In February, the struggling retailer planned to raise around $1 billion through preferred stock and warrants offerings to prevent bankruptcy.

Raised Funds and Terminated Deal

The company raised $360 million from the complex deal, which helped pay loan defaults and interest payments for senior notes. However, in late March, Bed Bath terminated the deal, announcing plans to sell $300 million worth of its shares and warning of potential bankruptcy if it could not secure the necessary funds.