Bed Bath & Beyond’s Canadian subsidiary starts CCAA proceedings

By Sarah Lizee

Olympia, Wash., Feb. 10 – Bed Bath & Beyond Inc.’s Canadian subsidiary, BBB Canada Ltd., filed for protection under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice on Friday, according to a statement from monitor Alvarez & Marsal Canada Inc.

As previously reported, Bed Bath & Beyond Inc. narrowly staved off bankruptcy by securing enough financing to gain support for a turnaround plan. The company priced $236.85 million of series A convertible preferred stock on Tuesday. That financing was a condition of a waiver and amendment for its loans.

However, the Bed Bath group “reluctantly concluded” that there isn’t enough capital available, even with the lifeline provided by the offering, to restructure both the U.S. business and resuscitate the Canadian business.

Without the support of the U.S. parent company, BBB Canada said it will be unable to pay its debt as it comes due.

The company said it started the CCAA proceedings to effect an orderly liquidation of its remaining inventory with assistance from a third-party liquidator and vacate its leased retail stores and premises.

Although Bed Bath & Beyond Canada LP is not an applicant in the CCAA proceedings, the stay of proceedings and other benefits of an initial order were extended to Bed Bath & Beyond Canada.

As of Nov. 26, the Bed Bath & Beyond banner in Canada had total assets of roughly C$427.4 million, and total liabilities of about C$342.8 million. The buybuy BABY banner in Canada had total assets of about C$52.7 million and total liabilities of about C$86.9 million.

Osler, Hoskin & Harcourt LLP is representing BBB Canada.

The chain of retail stores has headquarters in Union, N.J. Bed Bath & Beyond Canada’s principal place of business is in Richmond Hill, Ont.

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