Bed Bath & Beyond Inc is in talks with private equity firm Sycamore Partners for the sale of its assets, including its buybuy Baby stores, as part of a possible bankruptcy process, the New York Times reported on January 13, citing people familiar with the matter. The company is also in talks with other suitors about possible deals, the report added.

Bed Bath & Beyond said it does not “comment on speculation of this nature” and reiterated a previous statement that it was exploring multiple paths. Sycamore Partners declined to comment.

Shares of Bed Bath & Beyond were down about 4% at $5.02 in morning trading on January 13 amid weakness in the broader market. The stock rallied for four consecutive sessions that week and closed 50% higher on January 12.

The troubled home goods retailer posted a bigger-than-expected quarterly loss and a plunge in sales, after saying that it was exploring options, including bankruptcy, as it struggled with a dwindling cash pile.

The Union, New Jersey-based company had earlier considered selling its buybuy Baby stores after shareholder pressure, but held off on hopes it could fetch a higher price later, Reuters reported. The company’s buybuy Baby chain, which sells products for infants and toddlers, helped Bed Bath & Beyond obtain a loan worth $375-million in 2022.

New York-based Sycamore invests in consumer goods firms and retailers. It hit the headlines in 2022 with its takeover bid for department store chain Kohl’s Corp.

Source: Globe and Mail