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Bed Bath & Beyond files for Chapter 11 bankruptcy

Bed Bath & Beyond (NASDAQ:BBBY) filed for Chapter 11 bankruptcy protection Sunday, but said it intends to keep the chain’s 480 stores open for the moment as it attempts to auction off assets through the restructuring process.

“Bed Bath & Beyond today announced that it and certain of its subsidiaries … filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code [to] implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets,” the company said in a statement.

BBBY said it plans to keep its 360 Bed Bath & Beyond stores and 120 Buy Buy Baby shops and the two brands’ Web sites operating for now, but that the firm will soon begin “efforts to effectuate the closure of its retail locations.”

However, Bed Bath & Beyond (BBBY) said that if it successfully auctions off one or both brands through the bankruptcy process, the firm “will pivot away from any store closings needed to implement a transaction. The company believes this dual-path process will best maximize value.”

BBBY added that it has secured a commitment for some $240M in debtor-in-possession financing from Sixth Street Specialty Lending Inc. for use during the Chapter 11 process. The company listed $5.2B of debts and $4.4B of assets in its filing.

BBBY President and CEO Sue Gove said in the company’s statement that “millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby. … We deeply appreciate our associates, customers, partners and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders.”