Bed Bath & Beyond Defaults on Credit Line, Says It Can’t Pay Debts

Bed Bath & Beyond Defaults on Credit Line, , Says It Can’t Pay Debts.

CNN reports that in a regulatory filing on Jan.

26, the struggling retailer said it received a default notice from JPMorgan Chase.

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Shortly after, Bed Bath & Beyond shares plunged over 20%.

The SEC says that the company defaulted "on or around" Jan.

13.

Creditors are now seeking immediate payment, which may force Bed Bath & Beyond to file for Chapter 11 bankruptcy.

In its SEC filing, Bed Bath & Beyond said it was not able to pay its debts.

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... 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 & Beyond, via SEC filing.

In addition to cutting costs and reducing capital expenditures, the retailer is closing stores and distribution centers.

CNN reports that as of February 2022, the company had 950 stores and 32,000 employees.

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Bed Bath & Beyond was hit hard by the pandemic, losing 17% of sales in 2020 and 14% of sales in 2021.

CNN reports that the company, founded in 1971, also struggled to transition to online shopping and remain competitive.