Struggling retailer Bed Bath & Beyond warned that it has insufficient funds to pay off its debt and has defaulted on its credit line with lender JPMorgan, sparking fears of a possible near-future bankruptcy.
In a filing (pdf) with the U.S. Securities and Exchange Commission (SEC) on Jan. 26, the retailer, headed by Sue Gove, said that it had received a notice of acceleration and default interest from JPMorgan Chase under its credit agreement with the financial institution.
“The notice provides that as a result of the events of defaults that occurred on or around Jan. 13, 2023 and are continuing, which were among other things due to the company’s failure to prepay an over-advance and satisfy a financial covenant, the administrative agent has determined to exercise certain rights and remedies available pursuant to the Amended Credit Agreement,” Bed Bath & Beyond wrote….