Bed Bath & Beyond, the once popular US home goods retailer that in recent years failed to keep up with the rise of online shopping, filed for Chapter 11 bankruptcy protection on Sunday.
The retailer has been frank about its problems since January after a weak holiday sales period, and
has since struggled to manage its debt load with additional financing. The company said it intended to continue to operate its nearly 400 Bed Bath & Beyond stores, and additional 120 Buy Buy Baby locations, while it seeks to find buyers for “some or all of its assets”. It plans to close them all by the end of June.
A New Zealand company that trades under the same name is a separate, unrelated business and therefore not affected by the move.
Investment firm Sixth Street Partners, which previously offered a loan facility to Bed Bath & Beyond, is providing US$240 million ($390.6m) in debtor-in-possession financing for the bankruptcy proceedings. Founded in New Jersey in 1971, the retailer joined the wave of so-called big box stores featuring extensive inventory of niche goods at low prices. By its peak in the 2010s, Bed Bath & Beyond had nearly 1,500 stores nationwide carrying everything from linens to toilet plungers to candies and candles.
“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” said chief executive Sue Gove in a statement. Over the past year, the company has been beset with crises, including a campaign from activist investor Ryan Cohen, the ousting of its chief executive, and the death by suicide of its chief financial officer.
