Party City and Bed Bath & Beyond Both Appear to Be Heading Toward Bankruptcies
Posted on 01/07/2023
Party City Holdco Inc. could end up filing for bankruptcy. Party City has engaged AlixPartners LLP as a restructuring adviser. The retailer could have creditors taking over. Party City is likely to miss a coupon payment due in mid-February 2023 and could seek reprieve from its creditors to negotiate a restructuring. Party City has a market capitalization of about US$ 41 million.
On another note, Bed Bath & Beyond Inc. faces more decline in sales. The structure of the bankruptcy would be impacted by the outcome of its prized Buybuy Baby brand, which comprises much of the company’s value.
In August 2022, Bed Bath & Beyond announced the closure of 150 underperforming stores and the reduction of its corporate and supply chain staff by about 20%. On September 2, 2022, Bed Bath & Beyond Chief Financial Officer Gustavo Arnal (aged 52) fell to his death from the 18th floor of his balcony at 56 Leonard Street – commonly known as the “Jenga Building”. Arnal was one of the targets of a class action with regard to Bed Bath & Beyond’s stock becoming a pump and dump scheme. Arnal was stressed out by working 18-hour days. The medical examiner ruled his death a suicide.
Bed Bath & Beyond opened 2023 by warning to investors that it may not survive the year. On January 5, 2022 shares of Bed Bath & Beyond plunged almost 30% on the stock market, and the company announced it has “substantial doubt” in being able to continue to operate as a business.