|
|
|
|
|
|
|
|
|
|
Bed Bath & Beyond in Talks to Sell Baby Chain; Credit Repair Giant Files Amid CFPB Feud
|
|
|
|
|
|
|
|
Good day and welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, June 6. In today's newsletter, Bed Bath & Beyond is in talks to sell its Buybuy Baby unit to a private-equity buyer, while credit repaid giant Progrexion filed chapter 11 after a court loss to the Consumer Financial Protection Bureau.
|
|
|
|
|
|
|
|
A Buybuy Baby store in New York promoted a closing sale last month.
Photo: Richard B. Levine/Zuma Press
|
|
|
|
|
|
Bed Bath & Beyond in talks to sell Buybuy Baby to owner of Janie and Jack. Bed Bath & Beyond is in talks to keep its Buybuy Baby chain open through a possible sale to the private-equity owner of children’s apparel retailer Janie and Jack, according to people familiar with the matter.
Go Global Retail, the owner of Janie and Jack, is bidding to acquire Buybuy Baby from its bankrupt parent company and planning to keep the baby-focused chain of stores operating, according to the people. While Bed Bath & Beyond and Buybuy Baby have both been shrinking, the baby business has held up better than the larger home-goods chain, which filed for bankruptcy in April to close stores and look for last-ditch buyers.
The company has been conducting going-out of-business sales at hundreds of Bed Bath & Beyond and Buybuy Baby locations in recent weeks. It is also shopping its assets in bankruptcy and last week pushed back the deadline for final bids to Thursday.
|
|
|
|
|
|
|
The Consumer Financial Protection Bureau accused Progrexion of violating telemarketing sales rules.
Photo: Joshua Roberts/Bloomberg News
|
|
|
|
|
Progrexion files bankruptcy to weather consumer agency's lawsuit. Credit repair services provider Progrexion filed for bankruptcy after losing a court decision to dodge $2.7 billion in payments requested by the Consumer Financial Protection Bureau.
|
|
|
|
Progrexion, backed by investment firm Prospect Capital, has been fighting a lawsuit brought by the CFPB since 2019 when the consumer protection bureau accused the company of violating telemarketing sales rules by requesting and receiving payments of prohibited upfront fees for services.
The amount of damages hasn't been determined, but a federal judge in Utah ruled in favor of the CFPB in March, forcing the company to shut down 80% of its business and lay off employees.
|
|
|
|
|
|
|
|
|
|
Mallinckrodt says it has received offers for restructuring proposals from various creditor groups.
Photo: Whitney Curtis/Associated Press
|
|
|
|
|
|
Drugmaker's stock falls on possible repeat bankruptcy. Mallinckrodt’s stock fell by 40% Monday after the drugmaker said it is in talks with creditors about options including a second bankruptcy filing to fix its balance sheet and address a $200 million payment due this month under a previous chapter 11 restructuring.
The company said that its board is “actively evaluating this situation and considering options." An opioid settlement trust that expected to receive this month’s payment has demanded it be made and threatened legal action against the company and its directors and officers, Mallinckrodt said.
|
|
|
|
|
Crypto lender Genesis to continue mediation over proposed restructuring deal. Bankrupt crypto lender Genesis Global Capital on Monday received court approval to continue its ongoing mediation to resolve issues with a proposed restructuring plan with its parent Digital Currency Group, which owes Genesis at least $1.65 billion, and its creditors.
The initially approved 30-day mediation period ended at the end of May, but the company sought approval to extend it until June 16. Retail investors who lended Genesis money through crypto exchange Gemini’s Earn Lending Program were among those who opposed extending the mediation period. Genesis has been trying to rescue a proposed restructuring settlement since late April when part of creditors announced to walk away from it. —Akiko Matsuda
|
|
|
|
|
|
|
|
The Federal Reserve is widely expected to leave interest rates unchanged at its June meeting, but its moves for the rest of the year are under heavy debate.
Photo: Graeme Sloan/Bloomberg News
|
|
|
|
|
|
|
|
|
|
|
|
Binance founder Changpeng Zhao was named as a defendant in the SEC lawsuit.
Photo: Benoit Tessier/Reuters
|
|
|
|
|
SEC sues Binance. The Securities and Exchange Commission sued Binance, the world’s largest crypto exchange, alleging the overseas company operated an illegal trading platform in the U.S. and misused customers’ funds. The SEC lawsuit also named Changpeng Zhao, Binance’s founder and controlling shareholder, as a defendant.
|
|
|
|
|
|
|
|
|
|
|
