Bed Bath & Beyond (BB&B) has secured a $375 million loan, according to the Wall Street Journal. Citing sources familiar with the matter, WSJ reported that the retailer has selected a lender following a marketing process conducted by JPMorgan Chase & Co. The loan will provide BB&B with greater liquidity and give a confidence boost to suppliers regarding shipping items to the retailer.
BB&B has been struggling in recent months: June 2022 saw the departure of CEO Mark Tritton following a Q1 financials report indicating a 25% decline in sales compared to the same period the previous year. The retailer filled two top finance positions in June 2022, but its stock price tumbled earlier this month when activist investor Ryan Cohen, head of RC Ventures, revealed he was selling his 11.8% stake in the company.
Cohen, Founder of Chewy.com, had been pressuring BB&B to sell its buybuyBaby brand, which has been performing better than the company’s other banners. BB&B was exploring a sale in April 2022, but that now seems to be off the table.
The retailer’s problems also have been exacerbated by former CEO Tritton’s plan, revealed in March 2021, to emphasize private label brands. However, supply chain bottlenecks kept items from arriving on store shelves, and customer response was lukewarm when the products did appear, according to the WSJ.
Bed Bath & Beyond did not respond to a request for comment.