Bed Bath & Beyond says it is defaulting on credit line, warns of looming bankruptcy
Company is considering "all strategic alternatives" amid financial woes.
Home good retailer Bed Bath & Beyond took another step towards bankruptcy this week when it revealed that it had defaulted on its credit line and was considering "all strategic alternatives" in its tumultuous financial management.
The company said in an FEC filing that earlier this month "certain events of default were triggered under the Company’s Credit Facilities" following the corporation's "failure to prepay an overadvance and satisfy a financial covenant, among other things."
"At this time, the Company does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the Company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code," the filing stated.
The company has been greatly struggling to manage its finances in recent months, with the retailer laying off thousands of employees and closing many stores as it works to stay afloat.
Share prices in the company, meanwhile, are at about the level they were in the early 1990s after peaking in late 2013.