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.
A large space open due to voids in merchandise is seen on the floor of the Bed Bath & Beyond store, on April 10, 2023 in Naples, Florida.
Almost empty shelves at the Bed Bath & Beyond store on April 10, 2023 in Naples, Florida. Bed Bath & Beyond has filed for bankruptcy protection, but the company says its stores and websites will remain open and will continue to serve customers.
Bed Bath & Beyond in the Buckhead neighborhood of Atlanta, Georgia has announced it will close its store on February 2.
Bed Bath & Beyond store in the Edgewood neighborhood of Atlanta, Georgia, USA, February 02, 2023. The struggling retailer announced in February that it would close another 87 stores across the United States.
Bed Bath & Beyond throws in the towel, penniless
Almost empty shelves in a Florida store. The home improvement chain filed for bankruptcy Sunday, April 23 in New Jersey District Court, listing assets and liabilities estimated at $1 billion to $10 billion.
A large space open due to voids in merchandise is seen on the floor of the Bed Bath & Beyond store, on April 10, 2023 in Naples, Florida.
Almost empty shelves at the Bed Bath & Beyond store on April 10, 2023 in Naples, Florida. Bed Bath & Beyond has filed for bankruptcy protection, but the company says its stores and websites will remain open and will continue to serve customers.
Bed Bath & Beyond in the Buckhead neighborhood of Atlanta, Georgia has announced it will close its store on February 2.
Bed Bath & Beyond store in the Edgewood neighborhood of Atlanta, Georgia, USA, February 02, 2023. The struggling retailer announced in February that it would close another 87 stores across the United States.
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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