Bed Bath & Beyond a step closer to bankruptcy (updated)

NJBIZ STAFF//January 27, 2023

Bed Bath & Beyond a step closer to bankruptcy (updated)

NJBIZ STAFF//January 27, 2023

Bed Bath & Beyond could be one step closer to a bankruptcy filing.

In a Jan. 26 filing with the U.S. Securities and Exchange Commission (SEC), the struggling Union-based retailer said it received a notice of acceleration and default interest on Jan. 25 from JPMorgan Chase Bank and that “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.”

The notice comes just days after the Nasdaq Stock Market notified Bed Bath & Beyond that – after failing to file its results for the third quarter of Fiscal Year 2022 with the SEC – it was no longer in compliance for continued listing on the stock exchange.

NJBIZ recently recapped the retailer’s months-long struggles, including a Jan. 5 notice that it was considering filing for bankruptcy protection.

Restructuring expert joins board

In a separate SEC filing Jan. 24, Bed Bath & Beyond said it added restructuring expert Carol Flaton to its board as an independent director, effective immediately, for a sum of $30,000 a month payable in cash in advance and that payments will be prorated based on the actual term of her service.

Flaton brings over 30 years of experience in banking and finance, transformation and restructuring, and governance and risk management to her new role. Currently, Flaton serves on the Talen Energy Supply board of directors, a position she has held since November 2021. Prior to that, she was a managing director at AlixPartners, specializing in restructuring and turnarounds, from 2014 through 2019.

Flaton’s background also includes a managing director posts at Lazard, where she advised debtors, creditors and equity holders engaged in restructurings, debt exchanges, 363 sales, acquisitions, refinancings and capital raises, and with Credit Suisse First Boston and Citi.

Editor’s note: This story was updated at 2:28 p.m. ET Jan. 27 to include information about the new board member.