Bed Bath & Beyond filed for bankruptcy Sunday after the struggling home goods retailer failed to secure enough funds to stay afloat.
The company filed for Chapter 11 protection in New Jersey federal court, noting it anticipates the closure of all of its retail locations by June 30 — but that its 360 Bed Bath & Beyond and 120 Buy Buy BABY stores and websites will remain open for now.
“Thank you to all of our loyal customers,” Bed Bath & Beyond said in a statement. “We have made the difficult decision to begin winding down our operations.”
The beleaguered big box chain added that customers will have Sunday, Monday and Tuesday to use their remaining 20%-off coupons at their stores.
Company officials said that the filing is meant “to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
The filing comes after Bed Bath & Beyond announced it was closing 87 more stores in 2023 after shuttering 150 last year in a failed bid to avoid bankruptcy.
The Union, New Jersey-based company listed both its estimated assets and liabilities in the range of $1 billion and $10 billion, according to a court filing.
Bed Bath & Beyond said that it has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc, according to a separate statement.
In February, the embattled retailer had planned to raise around $1 billion through the offering of preferred stock and warrants to avoid bankruptcy.
The company was able to raise $360 million from the complex deal helping it pay loan defaults and interest payments for senior notes, but Bed Bath terminated the deal in late March.
It then announced plans to sell $300 million worth of its shares while also once again warning it might have to file for bankruptcy if it could not secure the funds.
The home goods retailer – which was founded in 1971 and 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 the last decade or so as its merchandising strategy to sell more store-branded products flopped.
Last year’s moves to abandon that strategy, and to bring in more national brands that shoppers recognize, had not shown signs of working, with the company reporting a loss of about $393 million after sales plunged 33% for the quarter ending Nov. 26.
In January, the company 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.
According to the court filing, Bed Bath employs 14,000 workers — a drastic dip from the 32,000 as of February 2022.
Retailers in distress often look to bankruptcy protection after the holiday season to take advantage of the cash cushion provided by recent sales.
In February, according to a court filing, Bed Bath & Beyond’s Canadian operations were going out of business. The Canadian division, which operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, is insolvent, the filing posted on the website of consultancy Alvarez & Marsal showed.
Bed Bath said in March it was seeking shareholder approval for a reverse stock split in the range of 1-for-5 to 1-for-10 and its board earlier in April urged shareholders to approve the split saying that if the plan fails, bankruptcy would be imminent.
With Post wires
[Written in collaboration with other media outlets with information from the following sources]
