Bed Bath & Beyond in talks with Sycamore Partners for sale of assets – NYT

Bed Bath & Beyond in talks with Sycamore Partners for sale of assets - NYT

(Reuters) – Bed Bath & Beyond Inc is in talks with private equity firm Sycamore Partners for the sale of its assets, including its buybuy Baby stores, as part of a possible bankruptcy process, the New York Times reported on Friday citing people familiar with the matter.

The company is also in talks with other suitors about possible deals, the report added.

Bed Bath & Beyond said it does not “comment on speculation of this nature” and reiterated a previous statement that it was exploring multiple paths. Sycamore Partners declined to comment.

Shares of Bed Bath & Beyond were down about 4% at $5.02 in morning trading amid weakness in the broader market. The stock rallied for four consecutive sessions this week and closed 50% higher on Thursday.

The troubled home goods retailer posted a bigger-than-expected quarterly loss and a plunge in sales on Tuesday, after saying last week it was exploring options, including bankruptcy, as it struggled with a dwindling cash pile.

The Union, New Jersey-based company had earlier considered selling its buybuy Baby stores after shareholder pressure, but held off on hopes it could fetch a higher price later, Reuters reported.

The companys buybuy Baby chain, which sells products for infants and toddlers, helped Bed Bath & Beyond obtain a loan worth $375 million last year.

New York-based Sycamore invests in consumer goods firms and retailers. It hit the headlines last year with its takeover bid for department store chain Kohls Corp.

(Reporting by Deborah Sophia in Bengaluru; Editing by Savio DSouza, Saumyadeb Chakrabarty and Krishna Chandra Eluri)

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