Bed Bath & Beyond Gets Help Restocking Its Shelves

ReStore Capital commits $120M to buy merchandise from suppliers
By Bob Cronin,  Newser Staff
Posted Apr 5, 2023 4:23 PM CDT
Bed Bath & Beyond Gets Help Restocking Its Shelves
A bed and bedding are displayed in a Bed Bath & Beyond store in New York in 2021.   (AP Photo/Mark Lennihan)

The struggling Bed Bath & Beyond retail chain is raising money the old-fashioned way: by selling merchandise. The company had already announced a stock offering it hoped would bring in $300 million to help it avoid filing for bankruptcy protection. On Wednesday, the company announced a deal with ReStore Capital, which will put up as much as $120 million for merchandise from the retailer's suppliers. Bed Bath & Beyond hasn't had the cash to keep its shelves stocked, CNN reports. "Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained," CEO Sue Gove said in January.

It's a cycle retailers in financial trouble can have difficulty escaping. Suppliers don't want to end up unsecured creditors after the retailer files for bankruptcy, so they require cash up front—a condition their competitors don't have to meet. The sinking retailers often don't have the cash available. The consignment deal with ReStore calls for it to buy goods totaling up to $120 million, on a revolving basis, per CNBC. Bed Bath & Beyond hopes it can now attract customers other than those drawn by going-out-of-business sales. The company still is closing most of its stores. (More Bed Bath & Beyond stories.)

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