A “Store Closing” banner at a Bed Bath & Beyond store on Friday, Jan. 6, 2023 in Farmingdale, New York.
Johnny Milano | Bloomberg | Getty Images
bed Bath and Beyond Apple is ramping up its team of legal advisers as the troubled retailer prepares for a possible bankruptcy filing that is due in New Jersey in the coming weeks, according to people familiar with the matter.
The company has hired the law firm Cole Schottz to assist with a potential filing in the US Bankruptcy Court for the District of New Jersey, according to the people, who were not authorized to speak publicly on the matter. However, the situation remains fluid, and plans may change, the people added.
Bed Bath has been in the news for reducing the financing that would keep it afloat if it files for bankruptcy, CNBC had earlier reported, The company is also in the midst of a sale process in hopes of keeping its namesake chain and BuyByBaby business alive.
Still, the Union, NJ-based retailer is moving toward a bankruptcy filing in its home state, an increasingly popular venue for Chapter 11 cases, the people said.
Earlier this week, partner retailer party City filed for Chapter 11 bankruptcy protection With plans to restructure its balance sheet And move with a smaller footprint of stores. That filing was made in the US Bankruptcy Court for the Southern District of Texas.
A spokeswoman for Bed Bath said the company does not comment on speculation or specific relationships, and is working with advisors to explore multiple avenues to regain market share.
“We have a team, both internally and externally, with proven experience helping companies successfully navigate complex situations and emerge stronger,” the spokesperson said in a statement.
A representative for Cole Schott did not respond to requests for comment.
The retailer is working with other advisors, including Kirkland & Ellis, a law firm known for representing bankrupt companies, as it irons out its financial troubles. Kirkland & Ellis and Cole Schotz also serve as legal counsel to crypto lender BlockFi, who filed for Chapter 11 protection in New Jersey bankruptcy court.
Bed Bath recently hired consulting firm AlixPartners as one of its advisors, replacing Berkeley Research Group. CNBC had earlier reported,
Despite efforts to enter bankruptcy protection, a filing is likely in the coming weeks, the people said.
Earlier this month, Bed Bath warned of bankruptcy after its turnaround plan failed to improve business and its balance sheet deteriorates, The retailer is facing heavy debt load, falling sales and widening losses.
bed bath on thursday said notice received from Nasdaq that it had fallen out of compliance after not filing its quarterly earnings statement on time. The company said it is working on finalizing its report and filing for regaining compliance within 60 days.