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The Canadian business is insolvent and does not have the “capacity or ability to independently effect a recapitalization or restructuring of the Canadian operations without access to cash and the support” from the parent company and its lenders, according to the filing.
The consultancy has been appointed as a monitor of the business in the Canadian court case.
The struggling retailer, which has been trying to avoid bankruptcy, raised about $225 million in an equity offering earlier this week and said it may get another $800 million over the next 10 months.
Bed Bath & Beyond (NASDAQ:BBBY) in January had raised doubts about its ability to continue as a going concern just months after it announced more than $500 million in new financing, as well as job cuts and 150 store closures.
The Union, New Jersey-based home goods retailer, which shot to popularity in the 1990s as a go-to shopping destination for couples making wedding registries and planning for new babies, has seen demand drop off in recent years as its merchandising strategy to sell more store-branded products flopped.
