Authentic Brands Reportedly in Discussion to Purchase Bed Bath & Beyond

Bed Bath & Beyond is entertaining potential buyers for its home goods store chain and its Buybuy Baby arm, according to a report in CNBC. The beleaguered retailer is also reportedly speaking with lenders to secure financing to sustain it during a potential bankruptcy filing.

Potential buyers reportedly include Sycamore Partners, the owner Staples, Belk and Talbots, and Authentic Brands Group, the owner of Forever 21, Barneys New York, J.C. Penney and Reebok. Both companies have a history of acquiring distressed retailers. They declined to comment to FN.

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Earlier this month, Bed Bath & Beyond shared that it is considering “strategic alternatives” to right-size its business after failing to implement a turnaround plan. Options include restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the company’s business activities and strategic initiatives, selling assets or filing for bankruptcy.

The retailer said in a statement that it does not comment on specific relationships but added that it is working with strategic advisors to evaluate ways to “regain market share and enhance liquidity.”

“Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner,” Bed Bath & Beyond said.

Bed Bath and Beyond also commenced layoffs earlier this month, as the retailer reported a wider-than-expected quarterly loss and dropping sales. The company lost $393 million during the fiscal third quarter, bringing its net losses to more than $1.12 billion for the first nine months of the fiscal year.

The company previously said it identified and commenced the closure of approximately 150 lower-producing Bed Bath & Beyond banner stores, and “continues to evaluate” its portfolio and leases, in addition to staffing.

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