Bankruptcy & Restructuring News Headlines for Friday Jan 6, 2023

Here's what we are reading this morning:

Bed Bath & Beyond bankruptcy might be next, retailer warns: The beleaguered retailer said in a public filing that it faces "substantial doubt" about its ability to continue operating on its own — and that it could file for bankruptcy protection.

Bed Bath & Beyond shares plummet after company warns of potential bankruptcy: The embattled home goods retailer said it is exploring financial options, including filing for bankruptcy.

Stitch Fix CEO steps down, 20% of salaried workforce to be cut: Stitch Fix founder Katrina Lake on Thursday announced the company will be cutting 20% of its salaried workforce and that she will reassume her post as CEO.

New York sues Celsius Network founder Mashinsky for defrauding crypto investors | Reuters: The civil lawsuit filed in a New York state court in Manhattan seeks to ban Mashinsky from doing business in New York and have him pay damages, restitution and disgorgement.

United Furniture lenders reveal chaos surrounding 2,700 layoffs: Lenders to United Furniture Industries claimed in court filings they were blindsided by the company’s pre-Thanksgiving move to abruptly fire its 2,700 employees in the middle of the night — revealing for the first time a bizarre sequence of events that triggered the surprise layoffs.

Crypto Lender Genesis Considers Bankruptcy, Lays Off 30% of Staff - WSJ: The firm suffered steep losses from loans it supplied to the now-defunct trading firm Alameda Research and crypto hedge fund Three Arrows Capital.

Silvergate’s Deposit Run Is Worse Than Great Depression-Era Runs: Silvergate just suffered a bank run that, by one measure, is worse than that experienced by the average bank to close in the Great Depression—and it’s still open. The California crypto-focused bank disclosed Thursday morning its customers had pulled $8.1 billion in deposits during the fourth quarter

Platinum Equity-Backed Yak Access Nears Restructuring Deal: The materials company is on the verge of an out-of-court deal that would involve its private-equity backer putting in more money.

Bed Bath & Beyond Prepares to File for Bankruptcy Within Weeks - WSJ: Bed Bath & Beyond’s shares and bonds have been trading at distressed levels as the retailer reported a string of losses, burned through its cash reserves and worked in recent months with financial adviser Lazard and law firm Kirkland & Ellis LLP on strategic options.

Morphe Closing All US Stores After Failed Bet on Jeffree Star, James Charles - Bloomberg: Morphe makeup, which rode the power of social media stars to rapid growth and a $2 billion valuation, said it’s planning to close all its US stores.

Genesis Parent Company DCG Shutters Its Wealth Management Division — The Information: Digital Currency Group, the parent company of crypto broker Genesis and the publication CoinDesk, has shut down its wealth management subsidiary HQ Digital, according to a memo shared with one of its customers. HQ—yet another piece of collateral damage in the FTX implosion—ceased operations Jan. 2

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