A “Close Store” banner on the Bed Bath & Beyond store in Farmingdale, New York, on Friday, January 6, 2023.
Johnny Milano | Bloomberg | beautiful pictures
Outdoor shower bed is beefing up its legal team as the struggling retailer prepares a potential bankruptcy filing in New Jersey in the next few weeks, according to people familiar with the matter.
The firm has hired law firm Cole Schotz to assist in its potential filing with the United States Bankruptcy Court in the District of New Jersey, according to people not authorized to speak publicly on the matter. However, the situation remains flexible and plans are subject to change, these people added.
Bed Bath discussed reducing its finances to keep it afloat should it file for bankruptcy, CNBC previously reported. The company is also in the process of selling in hopes of keeping the chain of stores of the same name and running the Buybuy Baby business.
However, the Union, NJ-based retailer has moved to file for bankruptcy in its home state, an increasingly common location for Chapter 11 cases, the people said.
Earlier this week, fellow retailer Pho eat and play file for Chapter 11 bankruptcy protection with the plan to restructure the balance sheet and moving forward with fewer stores. That filing was made in the United States Bankruptcy Court in the Southern District of Texas.
A Bed Bath spokesperson said the company does not comment on speculation or specific relationships, and has been working with advisors to regain market share and explore multiple avenues.
“We have a team, both internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger,” the spokeswoman said in a statement. An announcement.
A representative for Cole Schotz did not respond to requests for comment.
The retailer worked with other advisors, including Kirkland & Ellis, the law firm known for representing bankrupt companies, as they navigated their financial troubles. Kirkland & Ellis and Cole Schotz also act as legal advisors to crypto lender BlockFi, filed for protection under Chapter 11 in New Jersey bankruptcy court.
Bed Bath also recently hired consulting firm AlixPartners as one of its advisors, replacing Berkeley Research Group, CNBC previously reported.
Residents said despite efforts to prevent filing for bankruptcy protection, the filing is likely to take place in the coming weeks.
Earlier this month, Bed Bath warned of an impending bankruptcy as its turnaround plans failed to improve its business and its balance sheet deteriorated. The retailer is facing a heavy debt load, declining sales and growing losses.
On Thursday, Bed Bath said it get a notification from Nasdaq that it failed to comply after failing to file quarterly earnings reports on time. The company said it is working to finalize its report and submit it to regain compliance within 60 days.
