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April 5, 2023: Bed Bath & Beyond has teamed up with Hilco Global to keep its inventory stocked in a bid to avoid bankruptcy. The home goods retailer has signed a deal with investment manager ReStore Capital, which is part of the Hilco group, to enter a vendor consignment program. ReStore Capital will buy up to $120m worth of pre-arranged merchandise from Bed Bath & Beyond’s key suppliers on a revolving basis to help boost inventory levels at the retailer’s namesake chain and Buybuy Baby. The vendor consignment program will help Bed Bath & Beyond increase its inventory levels in top-selling items to improve customer experience, CEO Sue Gove said in a statement. The company has struggled to restock shelves after its vendors tightened credit terms, cut limits and required prepayments. Bed Bath & Beyond has been working to stay out of bankruptcy court after a series of poor quarters depleted cash flow. The company reported preliminary results for its fiscal fourth quarter last week, with negative operating losses continuing. In February, it announced a stock offering that ultimately only raised $360m, and on 30 March, announced another stock offering of $300m. Its shares have been trading at around 35 cents, and its market value is $151.5m.
