Bed Bath & Beyond has defaulted on a major credit line with JPMorgan and is now considering "all strategic alternatives," including bankruptcy, to right its financial ship.
In an SEC filing, the company said it is taking a number of steps to stabilize itself, such as cost cutting and lowering capital expenditures. The retailer is also actively reducing its footprint of stores and distribution centers and negotiating with landlords to bring down rental costs.
"These measures may not be successful," the company said.
The filing is just the latest evidence that Bed Bath & Beyond is about to go bust. The embattled retailer previously said bankruptcy was a possibility, but a default escalates its troubles.
Bed Bath & Beyond owes $550 million to JPMorgan and another $375 million to lender Sixth Street, which is a sizable chunk of its $1.2 billion debt load.
Outside of bankruptcy, other options that could keep the company running include an acquisition — though no buyers have publicly announced their interest.
The board has named Carol Flaton, a restructuring expert, as an independent director.
New car owner analysis from Insurify finds drivers spend an average of $5,851 a year on insurance, gas and maintenance alone, separate from financing costs.
Oil prices are climbing again after Saudi Arabia shut down a critical pipeline that has served as a major alternative route around the Strait of Hormuz.
