Bed Bath & Beyond makes past-due interest payment to bondholders

After missing an interest payment that was due to bondholders a month ago, embattled home goods retailer Bed Bath & Beyond has made good on what it owes.

In a March 1 update, the Union-based company said the full amount of interest was paid two days prior on the senior notes.

The announcement comes about a week after Bed Bath & Beyond shared that, while it did not meet the Feb. 1 due date, the full amount owed had been prefunded and would be paid Feb. 28.

A company spokesperson did not immediately respond to a request for further comment.

Bed Bath & Beyond – which had been in a grace period since missing those payments – was able to pay the interest after receiving $24 million as part of its recent last-minute equity raise to avoid near-term bankruptcy, the company said in a Jan. 21 filing with the U.S. Securities & Exchange Commission (SEC).

At the time, Bath & Beyond Chief Executive Officer and President Sue Gove said, “Building on the transformative equity financing we announced earlier this month, we continue to work on improving our financial position and optimizing value for all our stakeholders.”

She also said the company remains focused on “resetting our operational and financial foundation and meeting our commitments,” as well as “utilizing our current and future financing to execute our turnaround plans and restore our position with customers.”

Despite implementing a turnaround plan in August 2022 that called for closing 150 lower-performing stores and laying off 20% of the corporate and supply chain workforce, the cash-strapped retailer issued a stark warning in January—it may need to file for bankruptcy protection.

Since then, the company has made moves to shrink its brick-and-mortar footprint even further, starting with its entire chain of Harmon stores and its business operations in Canada. 

It also announced the closure of 150 more stores, on top of the 250 locations that are going dark.

Ultimately, Bed Bath & Beyond plans to keep 480 units in business – 360 of its namesake brand and 120 Buybuy Baby stores. Altogether, the company has closed 400 stores, roughly half of the 950 locations it had in February 2022.