Bed Bath beefs up legal team ahead of possible bankruptcy filing in New Jersey

Bed Bath & Beyond is bulking up its squad of ineligible advisors arsenic the troubled retailer preps a imaginable bankruptcy filing that would instrumentality spot successful New Jersey successful the coming weeks, according to radical acquainted with the matter.

The institution has hired instrumentality steadfast Cole Schotz to assistance successful a imaginable filing successful the U.S. Bankruptcy Court successful the District of New Jersey, according to the people, who weren't authorized to talk publically connected the matter. The concern remains fluid, however, and plans whitethorn change, the radical added.

Bed Bath has been successful discussions to nail down financing that would support it afloat if it were to record for bankruptcy, CNBC antecedently reported. The institution is besides successful the midst of a merchantability process successful hopes of keeping its namesake concatenation and Buybuy Baby concern alive.

Still, the Union, N.J.-based retailer has been moving toward a bankruptcy filing successful its location state, an progressively fashionable venue for Chapter 11 cases, the radical said.

Earlier this week, chap retailer Party City filed for Chapter 11 bankruptcy extortion with plans to restructure its equilibrium sheet and determination guardant with a smaller footprint of stores. That filing was made successful the U.S. Bankruptcy Court successful the Southern District of Texas.

A Bed Bath spokeswoman said the institution doesn't remark connected speculation oregon circumstantial relationships, and has been moving with advisors to regain marketplace stock and research aggregate paths.

"We person a team, internally and externally, with proven acquisition helping companies successfully navigate analyzable situations and go stronger," the spokeswoman said successful a statement.

A typical for Cole Schotz didn't respond to requests for comment.

The retailer has been moving with different advisors, including Kirkland & Ellis, the instrumentality steadfast good known for representing bankrupt companies, arsenic it navigates its fiscal troubles. Kirkland & Ellis and Cole Schotz besides service arsenic ineligible advisors to crypto lender BlockFi, which filed for Chapter 11 protection successful the New Jersey bankruptcy court.

Bed Bath besides precocious hired consulting steadfast AlixPartners arsenic 1 of its advisers, replacing Berkeley Research Group, CNBC antecedently reported.

Despite efforts to stave disconnected landing successful bankruptcy protection, a filing is apt successful the weeks ahead, the radical said.

Earlier this month, Bed Bath warned of a looming bankruptcy arsenic its turnaround plans neglect to amended the concern and its equilibrium expanse deteriorates. The retailer is facing a hefty indebtedness load, falling income and widening losses.

On Thursday, Bed Bath said it received a notice from Nasdaq that it was retired of compliance aft not filing its quarterly net connection connected time. The institution said it is moving to finalize its study and record it to regain compliance wrong 60 days.