How Bed Bath & Beyond is hedging its bankruptcy bet
April 26, 2023 – Media MentionBankruptcy partner, Jeff Krieger, provided commentary to Yahoo! Finance regarding Bed Bath and Beyond, and its management's choice of filing for Chapter 11.
Excerpts:
Jeffrey Krieger, a partner with Greenberg Glusker who also specializes in corporate bankruptcy, said that for a publicly traded company the size of Bed Bath & Beyond it's unsurprising that its management would choose Chapter 11, though one thing that’s a little bit unique, he said, it that it appears to be liquidating without much indication that of trying to emerge from bankruptcy as a going concern.
"Liquidation usually doesn’t happen right out of the box with a Chapter 11," Krieger said.
One potential downside of choosing Chapter 11 when a company's only intention is to liquidate, Krieger added, is that it could cost the company, and in turn its creditors, more to maintain employees and retail locations.
Read the full article here.