Bed Bath & Beyond Nears $375 Million Loan Deal With Sixth Street

Bed Bath & Beyond Inc. is closing in on a new loan from Sixth Street Partners that will give it breathing room as sales slump and it burns through cash.

Company management is in exclusive talks with Sixth Street Partners for a new line of credit that may be around $375 million, according to a person with knowledge of the discussions who asked not to be named because they are private. The loan isn’t final and could change, the person added.

The retailer is facing a shrinking cash pile and is falling behind on payments to vendors, prompting some suppliers ...