US-based private equity firm Sycamore Partners is negotiating a deal to purchase the assets of home goods retailer Bed Bath & Beyond, as reported by the New York Times.
Sources said the deal is part of a potential bankruptcy process and would include the retailer’s Buy Buy Baby stores.
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The Buy Buy Baby chain sells products for infants and toddlers. It had 137 stores as of 26 November last year.
Reuters reported that the business helped Bed Bath & Beyond obtain a $375m loan last year.
In addition to Sycamore Partners, Bed Bath & Beyond is understood to be in talks with other parties about possible transactions.
The retailer declined to comment on such speculations and reiterated it is still exploring possible options, while Sycamore Partners also did not comment.
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By GlobalDataThe report comes after the retailer registered net sales of $1.26bn for the third quarter (Q3) of fiscal 2022 (FY22), down by 33% from the same period of the prior fiscal year (FY21).
Earlier this month, Bed Bath & Beyond said it was exploring bankruptcy and other options in an effort to reduce costs.
Reuters reported last week that the company had also decided to lay off more employees as part of this.
On releasing its Q3 results, Bed Bath & Beyond president and CEO Sue Gove said: “As we shared last week, we continue to work with advisors as we consider all strategic alternatives to accomplish our near and long-term goals.
“Multiple paths are being explored and we are determining our next steps thoroughly and in a timely manner.
“We are committed to updating all stakeholders on our plans as they develop and finalise – particularly our employees and partners, who are the essential catalysts of our business and the cornerstones of our future.”
Last year, Bed Bath & Beyond announced plans to close around 150 stores as part of a major restructuring effort.
