Bed Bath & Beyond adds $850 million credit facility; nearly all stores open by July

Bed Bath & Beyond Inc. has strengthened its liquidity and long-term financial position with a new credit facility.

The struggling home goods retailer said Monday it has executed an $850 million asset-based credit facility, expiring in 2023, to further strengthen its liquidity position amid the "unparalleled challenge" resulting from the COVID-19 pandemic. The retailer also said it expects 95% of its stores to have reopened by early July.

"While the impact of the COVID-19 situation has been felt across our business, we have taken measured, purposeful steps to maintain our financial flexibility," said president and CEO Mark Tritton. "We ended our fiscal 2020 first quarter with approximately $1.2 billion in cash and investments, and we now have access to additional liquidity through our new ABL facility." 

Bed Bath & Bed pivoted to an omnichannel model during the pandemic, accelerating the introduction of buy-online-pickup-in-store (BOPIS) and contactless curbside pickup services in many locations. The company plans to expand both services, which helped support increased demand across its digital channels while its stores were dark, to the vast majority of its stores.  

“We have been delighted to welcome our customers back as we re-opened hundreds of stores in the last few weeks,” said Tritton. “At the same time, we are pleased with the response from our loyal customers to our new BOPIS and contactless curbside pickup shopping experience. These are important, targeted investments that strengthen our service offering and competitive position for the long term.”