Bed Bath & Beyond files for bankruptcy
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Bed Bath & Beyond has raised US$240 million (S$320 million) to help fund its operations in bankruptcy.
PHOTO: REUTERS
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NEW YORK – Bed Bath & Beyond came out of the 2008 downturn a winner.
While competitors like Sharper Image and Linens ‘n Things filed for bankruptcy, Bed Bath & Beyond actually expanded its business by acquiring other retailers.
Its home goods emporiums full of towels and kitchen aids – all available at a reduced price with coupons – were beacons that kept shoppers coming back.
Now, as the US economy experiences another period of uncertainty, Bed Bath & Beyond is no longer on top, the result of an increasingly unwieldy corporate structure and its failure to fully reckon with the ascendancy of online shopping.
On Sunday, the 52-year-old retailer said it was filing for bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey.
It said it would start the process of closing the company’s 360 Bed Bath & Beyond stores and 120 Buy Buy Baby locations on Wednesday and seek to sell parts of its business. In its Chapter 11 filing, the company said it expected all stores to close by June 30.
It will stop accepting its coupons on Wednesday, when its store closing sales begin. Customers will have until May 8 to use Bed Bath & Beyond gift cards.
“Thank you to all of our loyal customers,” the company said on its website. “We have made the difficult decision to begin winding down our operations.”
To help fund its operations in bankruptcy, Bed Bath & Beyond has raised US$240 million (S$320 million) from investment firm Sixth Street Specialty Lending.
The company’s decline offers a glimpse into the forces shaping the post-pandemic retail landscape. The past several years have been tumultuous for retailers. In 2020, early on in the pandemic, JCPenney, Neiman Marcus and J.Crew all filed for bankruptcy.
But in the past two years, retailers have benefited from US consumers’ willingness to spend. Now, in an environment in which shoppers are being more discerning about what they buy and where they purchase it, more companies will be at risk.
People are going to see “the Darwinism of retail” play out in 2023, said Mr Michael Lasser, a retail analyst at UBS who has covered Bed Bath & Beyond for 16 years. NYTIMES
