Bed Bath & Beyond has been exploring alternatives for Buybuy Baby.
Photo:
Michael M. Santiago/Getty Images
Bed Bath & Beyond Inc.
BBBY 6.85%
is fielding interest from potential acquirers of its Buybuy Baby business after the retailer came under pressure from an activist investor to unload the unit.
Suitors for the baby-gear chain include private-equity firm Cerberus Capital Management LP and
Tailwind Acquisition Corp.
TWND 0.40%
, a special-purpose acquisition company chaired by former Casper Sleep Inc. Chief Executive
Philip Krim,
according to people familiar with the matter. There is no guarantee the expressions of interest will result in a deal.
Union, N.J.-based Bed Bath & Beyond has been exploring alternatives for Buybuy Baby. The company added three new directors to its board as a part of a settlement agreement with activist investor
Ryan Cohen
in March, with two of them joining the committee overseeing the Buybuy Baby review.
Mr. Cohen, who co-founded pet-products retailer
Chewy Inc.
and is chairman at
GameStop Corp.
, has a roughly 9.8% Bed Bath & Beyond stake. He has said he believes Buybuy Baby could be worth as much as the entire company, which had a market value of roughly $1.3 billion Friday afternoon. He also called on the company to consider a full sale, which is another possibility.
Details of any bids for Buybuy Baby couldn’t be learned.
Bed Bath & Beyond reported disappointing results earlier this month, with net sales falling 22% to $2.1 billion in the three months ended Feb. 26.
New York-based Cerberus is no stranger to investing in the retail and consumer sector, with a range of investments including one in supermarket chain
Albertsons
Cos.
Private-equity firms have long been drawn to retailers. A current sales process for department-store chain Kohl’s Inc. has attracted firms including New York-based Sycamore Partners, among others, The Wall Street Journal has reported.
Write to Laura Cooper at [email protected] and Cara Lombardo at [email protected]
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