Bed Bath & Beyond is in talks to sell the assets

bed bath behindThe troubled home goods retailer is in talks with private equity firm Sycamore Partners to sell assets, including Buy Buy Baby stores, as part of a potential bankruptcy process, people familiar with the matter said. The retailer is also in talks with other suitors about potential transactions.

Buy Buy Baby’s fall was not as steep as that of his mother, The DealBook newsletter reports. Bed Bath & Beyond was over-expanded and struggled to stay competitive, but Buy Buy Buy maintained a strong position in a clearly defined market, and its sales decline was less visible.

On Tuesday, the company said the decline in third-quarter sales of Buy Buy Buy Baby was in the low 20 percent range from a year earlier, but that Bed Bath & Beyond sales fell 34 percent in the same period. In 2020, the infant and children’s goods series about $1 billion in salesAccording to the investor’s offer.

Bed Bath & Beyond said this month it was looking for new cash after a disappointing holiday season, including selling itself in pieces or as a whole. Buy Buy Baby remains a retailer’s crown jewel, but it can be difficult to sell the business as a standalone unit, because creditors may resist losing what is arguably the company’s most valuable entity. One way around this, one source said, is for potential buyers to take over the entire company and close down a number of Bed Bath & Beyond locations.

Discussions with various parties are ongoing, however, and may not lead to any deal. People with knowledge of the conversations spoke on condition of anonymity because the conversations were confidential.

A spokeswoman for Bed Bath & Beyond confirmed that many avenues are “being explored”. A spokesman for Sycamore declined to comment.

Sycamore knows the struggling retail market well. The company acquired a group of retailers, including large office supplier Staples, department store Belk and women’s clothing chain Talbots. Stefan Closny, Founder of a private equity firm, he has years of experience and relationships in the retail and consumer sectors. His interest in pieces of Bed Bath & Beyond could herald the kind of deal-making expected this year if the traditional finance market remains stuck.

In the wake of Bed Bath & Beyond’s bankruptcy warning this month, its shares have taken off. In the shadow of the meme stock craze of 2021, its shares have more than tripled over the past five trading sessions.

While the company explores options, it continues to move forward with plans to close 150 of its stores, which were announced in August as part of an aggressive restructuring plan. The retailer is trying to rebuild its inventory and store inventory again with more popular national brands — something it has moved away from over the past couple of years.

The process will take time, Sue Goff, CEO of Bed Bath & Beyond, said Tuesday during a call with analysts. This week, the company began another round of layoffs, which Goff said will save an additional $80 million to $100 million. Employees started receiving pink slips shortly after the call ended.