The $21.5 million deal—which covers Bed Bath & Beyond’s brand name, business data and digital assets but excludes its brick-and-mortar stores—must still be approved by New Jersey’s bankruptcy court.
The discount home goods retailer has one remaining store in Indianapolis and another in Carmel that will soon be closing their doors.
The retailer has set a closing deadline for its stores, including those in Carmel, Noblesville, Greenwood and Bloomington, and announced it will stop accepting its ubiquitous coupons soon.
The company employs more than 11,000 workers and has about 300 stores across dozens of states, including three in central Indiana.
Cut off from direct access to its own cash and turning to third-party financing to convince some suppliers to ship merchandise, Bed Bath & Beyond is running low on options to dig itself out of a financial hole years in the making.
The plan would let the organization keep operating while it compensates tens of thousands of men who say they were sexually abused as children while involved in Scouting.
The retailer emerged from its last bankruptcy in January 2021 after closing about 200 stores, cutting its employee head count and slashing debt.
Overall, filings for bankruptcy protection continued to fall nationwide and in Indiana last year.
The retailer, which has been preparing for a Chapter 11 filing after lenders declared it in default last month, priced new convertible preferred securities and warrants, it said in a statement Tuesday, in a deal that will ultimately raise more than $1 billion.
“There is substantial doubt about the company’s ability to continue as a going concern,” the retailer said in a statement.
Sam Bankman-Fried may be ready to come to the U.S. to face criminal charges related to the collapse of cryptocurrency exchange FTX following a chaotic court appearance in the Bahamas.
Party City’s debt load is unsustainable, according to S&P Global Ratings, which downgraded the company deeper into junk territory last month.
The revelations, which came in a filing to U.S. Bankruptcy Court in Delaware late Saturday, offer a striking portrait of the sheer number of entities that had considerably invested in, loaned money to or otherwise engaged with the three-year-old company.
The new CEO of the collapsed cryptocurrency trading firm FTX, who oversaw Enron’s bankruptcy, said there was a “complete absence of trustworthy financial information.”
The Justice Department and two federal regulators have launched probes into FTX, looking into whether the collapsing cryptocurrency exchange had skirted rules on safeguarding consumer deposits and relationships with trading affiliates, according to four people familiar with the inquiries.
The swift collapse of cryptocurrency exchange FTX sent more shockwaves through the crypto world on Thursday, with authorities now investigating the firm for potential securities violations and analysts bracing for a further downturn in crypto prices.
Scott Wise, founder of now-defunct Indianapolis-based restaurant chain Scotty’s Brewhouse, said his personal bankruptcy is related to financial issues from the chain’s collapse.
More than 80,000 men have filed claims saying they were abused as children by Boy Scouts troop leaders around the country.
Indianapolis-based Aearo Technologies LLC’s recent bankruptcy filing won’t shield its corporate parent 3M Co. from the massive flood of product-liability lawsuits over Aeros’ military earplugs, a judge has ruled.
Cineworld faces challenges specific to itself after building up $4.8 billion in net debt, not including lease liabilities. But the entire industry is navigating a tenuous recovery after the pandemic shut theaters worldwide.
