Bed Bath & Beyond: Details from its insolvency filing in Canada

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Toronto – Bed Bath & Beyond continues to hack away at its physical store footprint in its quest to stave off bankruptcy.

The company’s Canadian division has filed the equivalent of bankruptcy under the Companies Creditors Arrangement Act in the Ontario Superior Court.

Bed Bath & Beyond’s insolvency filing states that the Canadian operation lacks the ability to independently recapitalize or restructure without its parent company and lenders. Bed Bath & Beyond Inc. operates 54 Bed Bath & Beyond locations and 11 buybuy Baby stores in Canada, which will now be closed.

“The Bed Bath & Beyond Group, including BBB Canada has been in financial difficulty for the past several years, reporting significant net losses since 2018,” the filing states.

5 key details from the filing:

  • The company recently retained investment bank Lazard Frères & to find a buyer or financing solution for the Canadian division. “Multiple outreaches to third parties have not resulted in an executable transaction,” the company reported to the Canadian court.
  • Hilco Merchant Resources and AlixPartners estimate that the net proceeds from the liquidation of BBB Canada’s inventory, merchandise, furniture, fixtures and equipment will bring in approximately $40.5 million.
  • BBB Canada reported total assets in Canada of $427 million and total liabilities of $342 million.
  • For the third quarter ended Nov. 26, 2022, the Bed Bath & Beyond banner in Canada had a net loss of $87.6 million and its EBITDA was negative
    $81.8 million.
  • The BBB Canada division has not been profitable for several years. With revenues of $453.7 million, $542.7 million, and $553.6 million in F2019, F2020, and F2021, BBB Canada had negative EBITDA of $4.1 million, $25.1 million, and $28.9 million, respectively.

Alvarez & Marsal Canada Inc. has been appointed to monitor BBB Canada’s business and financial affairs as the operation winds down. A&M has not yet published the list of the Canadian division’s top creditors.

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