Bed Bath & Beyond, the US home goods chain, filed for Chapter 11 bankruptcy on Sunday, April 24th, marking the end of a years-long decline for the company. The filing followed the company's warning in January that it had "substantial doubt" about its ability to continue as a going concern. Despite several restructuring attempts, including closing 150 underperforming stores in 2022, the company was unable to reverse its financial decline. It listed both its estimated assets and liabilities at between $1 billion and $10 billion in the court filing. The company will conduct an orderly wind down of its businesses while exploring a limited marketing process to solicit interest in selling some or all of its assets.
Bed Bath & Beyond was founded in 1971 and grew to operate stores in all 50 US states, Puerto Rico, Canada, and Mexico. However, as online shopping gained popularity, the company struggled to adapt and compete with the likes of Amazon and Target. Its sales plummeted, and the company struggled to maintain supply in its stores, leading to a decline in share prices. While competitors invested heavily in improving the online shopping experience, Bed Bath & Beyond failed to evolve and adapt.
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 efforts to close its retail locations. It has secured a commitment of $240 million in debtor-in-possession financing to support its operations during bankruptcy. CEO Sue Gove said the company would work to maximize value for stakeholders and expressed gratitude to customers, associates, partners, and the communities it served.
Closing sales at the stores will begin on Wednesday. No date has been set for the company's first debtors' hearing. The company's chief financial officer, Gustavo Arnal, fell to his death from a New York skyscraper in what was ruled a suicide in September 2022.
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