As Bed Bath & Beyond (OTCMKTS:BBBYQ) continues to go through its bankruptcy process, BBBYQ stock remains in the news. Today, Bed Bath is making headlines as another potential bidder for its assets emerges.
Of course, a company going bankrupt is not that uncommon, even on the larger business levels. In fact, more than 230 firms have already gone bankrupt this year (and that tally was through April).
For Bed Bath & Beyond, though, BBBYQ stock continues to garner quite a bit of attention, having been a favorite among momentum traders. Along with GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), BBBYQ was a short-squeeze favorite — or at least it was before the “Q” got added to the end of its ticker.
In any regard, the retailer tried to secure a last-minute deal in March to continue its operations. Its goal was to secure enough financing to pay back creditors and bolster the business. When that fell through, so did any hope that Bed Bath would survive.
A recent filing showed just bad things had become. Revenue was crushed while margins evaporated. Bed Bath even revealed an impairment charge of $1.29 billion.
Who’s Buying the Assets From BBBYQ Stock?
Bed Bath & Beyond has spent plenty of time in the spotlight so far this year. That’s partly due to some of the stock’s big pops before its ultimate demise as well as Bed Bath’s popularity with certain traders.
Earlier this week, InvestorPlace reported that Overstock (NASDAQ:OSTK) had emerged as the stalking horse bidder in the company’s bankruptcy proceedings. Overstock is offering the company $21.5 million for a portion of its assets.
Specifically, Overstock is bidding for intellectual property (IP) assets, “including the rights to collect royalties and other proceeds and payments in connection [to] the business.” The bid also includes Bed Bath’s internet and mobile properties, marketing materials, data and additional assets.
Now, though, there are reports that another bidder may be emerging: Sixth Street. Per Reuters:
“Sixth Street is planning to use more than $500 million of its debt in the company to bid, the report said, citing the investment firm’s lawyer in a bankruptcy-court hearing on Wednesday […] If other offers for Bed Bath & Beyond’s assets come up less than what Sixth Street considers satisfactory, the lender plans to bid in the form of debt forgiveness.”
Sixth Street is Bed Bath & Beyond’s senior lender. Reportedly, the firm could be looking to buy the company’s Buy Buy Baby chain or potentially all of its assets.
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On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
