Hilco is newest vampire. Let's avoid BK at all costs or we'll end up without golden parachutes like poor MT.
Ever wonder if some of these deals with HBC, etc, are with companies they have a vested interest in?
14 replies (most recent on top)
At the very least, Hilco, or the consignment or flea market subdivision, or whoever should send some towels. That would help a little.
“If BBBY cannot sell the merchandise, then Hilco owns it and presumably can market it through any of their other ventures.“
It’s not $120 million worth a merchandise all at once. The deal is what Amazon does with vendors and or direct merchants. Instead of shipping the goods directly to customers from Amazons warehouse. Goods are ship to stores where customers can purchase directly. Bed bath really gains nothing out of this deal, except give the perception of having goods in building. The deal is meant to pay for operational cost to run the company. The Reilly deal is meant to secure liquidity to avoid bankruptcy. We are basically a warehouse for Hilco to sell goods directly to consumers.
I am OP- thanks for the information, gang! But when I thought of the old adage that BBBY looked "like a flea market" in stores, I had to add the bit on the Antique Malls.
Wonder if this means Hilco will have to work one weekend a month to have its merch there?
/s.
1rjw: my point,too.. Why go to these lengths to avoid BK? What is going on here?
This is just to put items on the shelves. Items that BBB doesn't even own, Hilco does. But who is going into these stores to purchase said items? The customer base is gone. Items purchases by any customers left, BBB isn't even making full sale price off the merchandise because Hilco gets a percentage. Talk about prolonging things even more. There are serious questions as to why BBB is taking all these steps when all facts point to them going out of business. Who is this really benefiting?
If BBBY cannot sell the merchandise, then Hilco owns it and presumably can market it through any of their other ventures.
“Probably a strategy to fill the empty stores up with something to sell before announcing liquidation....that's the only reasoning I can think of why they would toss BBB $$$“
Does not make any sense at all. Why will Halco give $120 mil of merchandise to sell it at a liquidation price? I hope you don’t do your accounting at home. Might explain why you still life home with ma and pa
B Riley and Hilco are part of the joint venture that is liquidating stores. They own everything if the they are not paid back 300mill by 4/29. Facts are facts
- not facts at all and you may want to do your research. Completely false narrative.
- Bed Bath & Beyond Inc. (Nasdaq: BBBY) (the "Company") announced today that it filed a prospectus supplement with the U.S. Securities and Exchange Commission ("SEC") under which it may offer and sell up to $300 million of shares of its common stock from time to time through an "at-the-market" offering program ("ATM Program") with a maximum aggregate offering amount of up to $300 million.
- they have till 4/29 to get max amount of $300 mil.
- Hilco is a completely different mess
@1dkz+1lZJFG2O Why 4/29 ?
B Riley and Hilco are part of the joint venture that is liquidating stores. They own everything if the they are not paid back 300mill by 4/29. Facts are facts
Who will be buying this stuff? Haven’t we lost about 50% of our business?? A lot of people just won’t come in anymore…….
Another new loan 120mil think they'd do right by their supervisor and managers severance now....course not
Consignment stores are places like Antique Malls who deal in speculative junk most of the time.
It's not really a line of credit. BBB has to pay Hilco as it sells the items. BBB will not be making much money if any at all with this deal.
Consignment is a business model in which a retailer, also referred to as a consignee, agrees to pay a seller, or consignor, for merchandise after the item sells. Consignment shops are typically retail stores that specialize in a particular type of consumer product.
Probably a strategy to fill the empty stores up with something to sell before announcing liquidation....that's the only reasoning I can think of why they would toss BBB $$$.