Bed Bath & Beyond Weighs Private Loans as Retailer Burns Though Cash

  • Retailer’s debt plunged amid sales slump, excess inventory
  • Company hired adviser to help optimize balance sheet
Bed Bath & Beyond store in Los Angeles.Photographer: Patrick T. Fallon/Bloomberg
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Bed Bath & Beyond Inc. is considering tapping the private credit market to boost liquidity as the struggling retailer burns through its cash.

Company management consulted with direct lenders about a potential new asset-based credit line, according to people with knowledge of the talks who asked not to be named because the talks are private. The company had about $108 million in cash and equivalents at the end of May, down from $1.1 billion a year earlier.