Seemingly out of options, Bed Bath & Beyond may announce bankruptcy this week, barring the emergence of a last-minute buyer. That’s according to sources who spoke to Reuters, saying the troubled retailer has assembled liquidators to close additional stores. Those going out of business sales could begin as early as this weekend.
Bed Bath & Beyond advisors met on Monday to discuss options to avoid bankruptcy, according to Reuters. The retailer has been in talks with investment firm Sixth Street—which loaned Bed Bath & Beyond $375 million last year—to provide funding. The company has an outstanding debt payment due on Feb. 1, as well as payroll to meet by the end of the week.
Bed Bath & Beyond just announced another round of store closings in addition to the 150 previously announced. The new closures would affect another 87 Bed Bath & Beyond stores, as well as its approximately 50-store Harmon chain and five BuyBuy Baby locations. The company also defaulted on a J.P. Morgan Chase loan last week.
Sources close to the matter told Reuters that a last-minute buyer could emerge to sign a deal for brands such as its BuyBuy Baby property, which has faired slightly better than its parent company in recent years. Waiting until the last minute often can net buyers more favorable terms in negotiations.
Bed Bath & Beyond didn’t immediately respond to a request for comment.