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Bed Bath & Beyond is closing more than 200 stores as it runs out of cash to fund operations.
Dreamstime
Bed Bath & Beyond
on Thursday admitted what many industry analysts have suspected for quite some time—the company is quickly running out of cash and can’t pay off its sizable debt.
While acknowledging the a problem may be progress, there’s likely more pain—and narrowing options—ahead for the retailer.
“I am convinced that
Bed Bath & Beyond
is teetering on the brink of bankruptcy,” said Daniel Gielchinsky, partner at DGIM law.
In a delayed quarterly filing with the Securities and Exchange Commission on Thursday, the retailer said its lenders were calling back their loans after the company failed to prepay an advance on a credit facility, triggering events of default. An event of default is a pre-defined circumstance that allows lenders to demand full repayment of the outstanding loan before it’s due, as well as seize any collateral if the company is unable to pay…
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