A Bed Bath & Beyond Inc. (BBBY) spinoff could unleash one of the company’s strongest businesses, the Buybuy Baby chain of stores that sell strollers, cribs and other baby gear.
Bed Bath, which is preparing to file for Chapter 11 bankruptcy protection, has been in discussions with private equity firm Sycamore Partners and another suitor to sell the baby products chain as part of a bankruptcy reorganization, according to sources. The discussions were earlier reported by The New York Times.
While sales at both chains are shrinking, the smaller baby products business is doing better than the home goods chain. Bed Bath & Beyond is still opening new Buybuy Baby stores despite closing 150 namesake stores and taking action to conserve cash. As of February 2022, the company has approximately 770 Bed…