- After its efforts to recover failed, Bed Bath & Beyond has announced that it will be shutting down all of its stores and selling off its inventory within the next two months. The company recently filed for Chapter 11 bankruptcy, following its earlier admission that it was exploring options to restructure its debt. The move enables the company to commence the liquidation of its 360 Bed Bath & Beyond outlets and 120 Buy Buy Baby stores right away. However, it has indicated that it is also attempting to find a purchaser for some or all of its assets.
The closure of a popular home goods retailer in America will jeopardize the livelihoods of numerous employees, including their retirement funds and severance packages. The company presently has a workforce of roughly 14,000 individuals across the US and Puerto Rico, and it has requested permission to disburse approximately $76 million in employee salaries and benefits during its bankruptcy proceedings. According to court records, Bed Bath & Beyond anticipates earning around $718 million in total sales revenue, with a total debt obligation of $1.8 billion.
Why it matters
Bed Bath & Beyond's decline is largely self-inflicted, according to suppliers, analysts, and former managers and employees. Leadership decisions over almost a decade pushed the company towards financial ruin, leading to decreased sales and shopper retreat. The company nearly filed for bankruptcy earlier this year but managed to secure a last-minute financing deal worth $360 million from Hudson Bay, falling short of the $1 billion target and surprising many.