As part of its work to improve its financial condition, Bed Bath & Beyond has launched a new vendor consignment program with ReStore Capital, a Hilco Global company, which will purchase up to $120 million in pre-arranged merchandise from the retailer’s key suppliers on a revolving basis.
The consignment goods will supplement inventory being sold at Bed Bath & Beyond and buybuy BABY.
Bed Bath & Beyond previously announced it would establish a consignment program to get resupplied at a time when its financial condition has worried vendors. ReStore Capital steps in as a credit-focused investment manager that creates financing solutions in the consumer, retail, commercial, wholesale and manufacturing industries, Bed Bath & Beyond noted.
In announcing the consignment program, Sue Gove, Bed Bath & Beyond president and CEO said, “We remain relentless in executing plans that can help us overcome near-term operational and financial challenges. Our new vendor consignment program enables us to increase our inventory position in top items that customers are buying and improve the customer experience. This capital-light solution can allow us to strengthen merchandise availability and better fulfill demand. The support we are seeing from our top supplier partners demonstrates the staying power of our brands and our potential for sustainable improvement. We know the performance and value of our business today are not representative of our full potential. Our entire organization is focused on expanding and accelerating improvement. We are doing what we must to sustain our business immediately and unlock our true value over the long term for all stakeholders.”
