Bed, Bath & Beyond Files for Bankruptcy - “Winding Down Our Operations”
Sunday, April 23, 2023
“Thank you to all of our loyal customers. We have made the difficult decision to begin winding down our operations,” is now the first line of the Bed, Bath & Beyond website.
The Home goods company grew to be a national retail powerhouse and then faced a long an difficult downturn.
The company has warned of a potential bankruptcy for months.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAccording to the case filing, "On April 23, 2023, Bed Bath & Beyond Inc. and 73 affiliated debtors (collectively, the "Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey."
“It needed a $375 million loan to get through the holidays. It struck an unusual $1 billion financing deal with a hedge fund in February to put off a bankruptcy filing, then scrapped the deal and tried this monthto raise $300 million from other investors,” reports the Wall Street Journal.
“None of the moves were enough. Nor were efforts to stem losses by closing hundreds of stores. Sales evaporated and its stock price tumbled well below $1 in recent weeks, as the rescue efforts dimmed. The company had said that a bankruptcy filing would likely trigger a liquidation of its remaining business, which ran low on money and merchandise to sell. The Wall Street Journal earlier reported the filing could come as soon as this weekend,” according to the WSJ.
To facilitate this process, the Company has received a commitment of approximately $240 million in debtor-in-possession financing ("DIP") from Sixth Street Specialty Lending, Inc. Following court approval, the Company expects this financing to provide the necessary liquidity to support operations during the Chapter 11 process.
The Company's 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the Company begins its efforts to effectuate the closure of its retail locations. Through the filing of customary motions with the Court, the Company intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors.
Sue Gove, President & CEO of Bed Bath & Beyond Inc. said, "Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby. Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY. We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders."
By 2020, the retailer was closing stores by the hundreds.
The Providence Place Mall was one of the store closures.
Related Articles
- See Which RI Retailers Have Been Fined for Selling Cigarettes to Minors
- Over 200 RI Retailers Have Been Caught Selling Tobacco to Minors Since 2014
- Cicilline Applauds Supreme Court Decision Allowing States to Collect Sales Tax on Online Retailers
- Tillinghast of Squad Locker Talks About Managing Growth as an Online Retailer
- Major Retailers’ Thanksgiving Day Shopping Hours
- BBB Warns Consumers of Online Retailer, shopZoey.com
- “New and Noteworthy” App To Boost Local Supermarkets, Retailers
- Retailers Lose Two of Their Biggest Days to Blizzard
- NE Retailer Benny’s Thrives Despite No Online Sales
- DeRoche: Patent Trolls Targeting RI Retailers & Main Street Businesses
- NEW: Retailer Payless to Close All 2,100 U.S. Stores, Including 20 in Southern N.E. UPDATED
- RI Senate Passes Bill to Collect Sales Taxes from Online Retailers
- NFL, Retailers Pushing Vick Jersey Sales Ahead of Controversial Pro Bowl Appearance
- NEW: Essential Versus Non-Essential Retailers for Closure - RI Commerce Secretary Pryor Outlines
- Retailer J. Crew Poised for Bankruptcy, According to Multiple Reports
- Retailer Pier 1 to Close All 540 Remaining Stores
- RI Paint Retailer The Color House Becomes Certified Woman-Owned Business Enterprise
- Plastic Bag Ban Goes Into Effect on Oct 22 at Providence Retailers
- General Assembly Passes Bill to Collect Sales Taxes from Online Retailers
- Mobile Sports Betting, Sales Tax for Online Retailers: This Week at the State House
- Retailers’ Nightmare: Amazon Gearing Up for One-Day Shipping
- NEW: Rhode Island-Founded Cumberland Farms Sold to British Retailer
- If You Thought 2020 Was Tough for Retailers, Top Research Firm Says 2021 Will Be Far Worse
