Bed Bath & Beyond Secures New Financing
A day after announcing a major new strategic initiative, Bed Bath & Beyond said it has successfully completed previously disclosed financing agreements.
The retailer has secured more than $500 million of new financing, including its expanded $1.13 billion asset-backed revolving credit facility (ABL facility) and a new $375 million "first-in-last-out" facility (FILO facility). The refinancing of the ABL facility was led by J.P. Morgan, and Sixth Street Partners is serving as the lender and agent for the company's FILO facility.
The enhanced liquidity is expected to be utilized to support immediate strategic priorities to drive traffic and sales and gain back customer relevance, including rebalancing the assortment and inventory position, company officials said.
“We are pleased to announce this critical step in moving Bed Bath & Beyond in a positive direction by strengthening our financial positioning,” said Sue Gove, director and interim CEO of Bed Bath & Beyond. “We are committed to utilizing our resources to better serve our customers, drive growth, and recapture market share to deliver returns for all stakeholders.”
On August 31, Bed Bath & Beyond announced a number of new initiatives as part of an effort to meet customer demand while also driving growth and profitability. This includes the elimination of three of its nine private label brands and an assortment reduction in the remaining six lines.
Additionally, the home specialty retailer said it would also close upwards of 150 underperforming stores.