Union, N.J. – Bed Bath & Beyond, now in default on its credit, has added an independent director whose skills are likely to come in handy.
The beleaguered retailer’s board of directors notified the Securities and Exchange Commission that on Jan. 24 it appointed restructuring specialist Carol Flaton to the board, effective immediately. She currently has no committee assignments, BBB reported.
From 2014 to 2019, Flaton was a managing director at AlixPartners specializing in restructuring and turnarounds, according to her biography at Talen Energy Supply, where she also serves as a director.
Prior to joining AlixPartners, Flaton was a managing director in the restructuring practice of Lazard Freres. From 2008-2013, she advised debtors, creditors and equity holders engaged in restructurings, debt exchanges, 363 sales, acquisitions, refinancings and capital raises.
Prior to Lazard, she was a managing director at both Credit Suisse First Boston and Citi (1995- 2008), where she was responsible for distressed positions in the banks’ portfolios and a senior member of the risk management teams.
As part of Bed Bath & Beyond’s board of directors, she will receive compensation equal to $30,000 per month payable in cash in advance. The payments will be prorated based on the actual term of her service, Bed Bath informed the SEC.
In a separate filing yesterday, Bed Bath & Beyond disclosed that it has received a notice of default and request for immediate payment on its $550 million asset-backed loan with JP Morgan. The company also owes $375 million to lender Sixth Street after expanding its credit facility last August.