US: Bed Bath & Beyond busted in the towel
Bed Bath & Beyond is bankrupt. The US home products chain is resorting to Chapter 11 for its reorganization, in which it intends to sell part or all of its assets.
With Bed Bath & Beyond, the list of US retail chains that have recently filed for bankruptcy assistance is growing.
Bed Bath & Beyond has been warning for months of a possible bankruptcy. During the Christmas season, he needed a $375 million loan, and in the following months he reached an agreement to get a billion from a hedge fund to avoid Chapter 11.
However, the agreement was canceled at the last minute, forcing the company to run for cover and try to raise 300 million from other investors.
None of those moves worked, and Bed Bath & Beyond was forced to file for bankruptcy after its stock plunged below the dollar in recent weeks.
Who are the stars …
A popular culture phenomenon and one of the “winners” of the 2007-2008 financial crisis, the home goods chain has begun to struggle in recent years.
Founded in 1971, Bed Bath & Beyond was an unexpected success in its early days with hundreds of stores stocking everything. In 1992 it was released to the public and until 2019 it never closed a year in the red.
…to the stables
However, the rise of Amazon and the growing trend of online shopping has hurt it deeply, resulting in a business model that can no longer compete on equal terms with the competition.
Then came the pandemic and the lockdowns, during which the company decided to revise its strategy by favoring small brands over home product giants to differentiate itself from its competitors.
But that didn’t work out for Bed Bath & Beyond either, leaving Chapter 11 as the only alternative.
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