Bed Bath & Beyond Canada Ltd. was granted an initial order for creditor protection by the Ontario Superior Court of Justice Friday under the Companies’ Creditors Arrangement Act, according to the company acting as the court-appointed monitor for the case.
Court documents posted to Alvarez & Marsal Canada Inc.’s website say Bed Bath & Beyond Canada is insolvent and cannot restructure its operations without support from its American parent company.
The documents dated Friday say Bed Bath & Beyond Canada has commenced the creditor protection proceedings to allow for a timely wind-down of the business and liquidation of inventory.
They say the company had a net loss of $99.5 million for the nine-month period ending Nov. 26, 2022.
U.S. parent company Bed Bath & Beyond Inc. has shut scores of its stores across the country and warned last month that it may need to file for bankruptcy protection as it was unable to pay back its loans.
It recently raised about $1 billion through offerings of preferred stock and warrants, which it said will be used to pay off debt.