Bed Bath & Beyond is said to be in talks with potential lenders that would finance the company during bankruptcy proceedings, as per sources. As per Business Times, one of the options includes a possible ‘stalking horse’ bid, where the lender would also offer to buy some or all of the company’s assets in bankruptcy and set the low end of the bidding bar. By setting the low-end of the bidding, other parties will not be able to offer less. However, talks are only in the early stages and are subject to change. Bed Bath recently reported a quarterly net loss of $393mn from a loss of $276.4mn a year prior, and a 33% drop in sales to just $1.26bn. The company warned of a possible bankruptcy last week, after calling off a bond-swap offering, post which its bonds fell by over 50% to less than 10 cents on the dollar.
Bed Bath’s bonds are trading over 2 points higher at 9-10cents on the dollar.