Bed Bath And Beyond Facing Possible Bankruptcy
The company said it does not have the sufficient resources to repay the amounts under the Credit Facilities.
A company founded in 1971 could soon be forced to file for bankruptcy.
Bed Bath and Beyond was one of the first big retailers in the specialty-store space.
On Thursday, the retailer received a notice of default from its lender, JPMorgan Chase. The company said it does not have the sufficient resources to repay the amounts under the Credit Facilities, which could lead the company to consider alternative routes including restructuring its debt under bankruptcy.
The retailer said additionally it is cutting costs, lowering capital expenditures, as well as closing stores and distribution centers.
Bed Bath and Beyond was once a staple for affordable home decoration, kitchen and college dorm room furniture. However, it fell behind when it struggled to make the transition to on-line shopping like other big chains.
The company also suffered during the pandemic with stores temporarily closing.
Bed Bath and Beyond could be forced to file for Chapter 11 bankruptcy reorganization.