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Customers store at a Bed Bath & Beyond retailer on January 05, 2023 in Forest Park, Illinois.
Scott Olson/Getty Images
Trading in
Bed Bath & Beyond
inventory was halted on Thursday after the corporate mentioned it had triggered “certain events of default” earlier this month.
Bed Bath (ticker:
BBBY
) mentioned that occurred round Jan. 13, when the corporate was unable to prepay a so-called overadvance on its revolving credit score facility and fulfill a monetary covenant, amongst different issues.
As a outcome, representatives of the lender advised the corporate on Wednesday that the principal quantity of all excellent loans underneath this settlement was “due and payable immediately.” In addition, all excellent loans underneath the credit score facility will bear curiosity at an extra default charge of two% each year.
“At 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,” Bed Bath mentioned in a securities submitting.
“At 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,” Bed Bath mentioned within the submitting.
The firm’s revolving credit score facility was one of many firm’s few remaining sources of liquidity. Bed Bath mentioned it’s endeavor quite a lot of actions to enhance its monetary place, together with reducing prices, reducing capital expenditures, and lowering its retailer footprint, however the measures “may not be successful,” the corporate mentioned within the submitting.
The disclosure got here within the firm’s quarterly 10-Q submitting with the Securities and Exchange Commission. Earlier in January, Bed Bath mentioned it wasn’t going to have the ability to file the 10-Q in time to fulfill SEC necessities, prompting the
Nasdaq Stock Market
to ship a discover warning the corporate it was prone to being delisted.
Before Thursday’s buying and selling halt, the inventory was down 16% to $2.71.
(This is a growing story. Please examine again quickly for extra particulars.)
Write to Sabrina Escobar at [email protected]
www.barrons.com
