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Bed Bath & Beyond managed to stave off bankruptcy after reaching a deal to raise $1 billion in funding. According to CNBC, the company will receive $225 million in cash upfront plus an additional $800 million over time. One of its other lenders, Sixth Street Partners, also agreed to give the retailer a $100 million loan.
As part of the deal, the home goods retailer will have to close 150 stores across the country. The closures are in addition to previously announced plans to shutter 200 stores, several buybuy Baby stores, and all 50 Harmon locations. The combined closures represent nearly half of the 955 brick-and-mortar stores Bed Bath & Beyond operated last year.
In a filing with the SEC, Bed Bath & Beyond said it expects to trim its expenses by around $1 billion in 2023. However, if the deal does not work out, the company said it will "likely" file for bankruptcy.
The company has not determined which stores will close down and did not provide a deadline for when those decisions would be made.