Bed Bath & Beyond filed for Chapter 11 bankruptcy April 23 and announced that it will begin to “implement an orderly wind down” of operations in all 360 stores after a year of declining sales and closures.
Sue Gove, president and CEO of Bed Bath & Beyond Inc., expressed her gratitude for the company’s devoted customers in a statement Sunday.
“We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders,” she said.
While shoppers may have to say goodbye to the chain, which was founded in 1971, shoppers will soon be able to to take advantage of the closing sales.
Here’s what you need to know.
Stores will remain open for now
The home goods retailer announced it had “filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey” in a statement April 23.
However, the company assured Bed Bath & Beyond and buybuy BABY customers that they will still be able to purchase items. The stores will remain open as Bed Bath & Beyond “begins its efforts to effectuate the closure of its retail locations,” the company said in the statement.
“Through the filing of customary motions with the Court, the Company intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors,” the statement read.
Bed Bath & Beyond said it has received $240 million from the investment firm Sixth Street Specialty Lending to help fund the bankruptcy process as it tries to sell some of its assets.
Closing sales begin soon
Bed Bath & Beyond revealed on its website that closing sales will begin on April 26 with “deep discounts.” Customers can still shop online, in stores or using the Bed Bath & Beyond/buybuy BABY app.
All purchases after April 26 will be final. The company said they “expect” to accept returns and exchanges for items bought before April 26 up until May 24.
The Welcome Rewards program will be up and running until May 15, meaning customers will be able to redeem points and merchandise credits. However, customers will not be awarded Welcome Rewards on any future purchases following the bankruptcy announcement.
Coupons will expire this week
Gift cards can be used through May 8, but any shoppers hoping to use coupons will be disappointed. The company said employees will stop accepting coupons on April 26.
Membership benefits will also end the day closing sales begin, but refunds are not available for membership holders.
Bed Bath & Beyond encouraged customers to contact Kroll Restructuring Administration, a restructuring service, for more information.
Why is Bed Bath and Beyond bankrupt?
The bankruptcy news comes after the company began 2023 with a series of store closures and layoffs.
In January, CNBC reported that employees were sent a memo that said the company’s chief transformation officer role had been eliminated. Additionally, the message said workforce would be reduced “across our corporate, supply chain and store portfolio,” but did not include the specific number of layoffs.
CNBC had previously reported in June 2022 that Bed Bath & Beyond’s shares had plummeted, and CEO Mark Tritton departed along with other top executives. Gove stepped in as interim CEO before taking over the role.
But the financial problems continued. The company’s shares were worth about $2 in January, according to NBC News.
In February, Bed Bath & Beyond announced 150 store closures across the country, just one week after initially revealing that 87 locations, five buybuy Baby stores and and all remaining Harmon Face Value stores were shuttering.
At the time, Gove said the 150 closures, totaling about half of all Bed Bath & Beyond locations, were intended to prioritize a “straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth and delivering business returns.”
What is Bed Bath and Beyond?
Bed Bath & Beyond is a popular American chain of retail stores that specializes in selling a wide variety of home goods and decor, as well as health and beauty products, electronics, and furniture. The company was founded in 1971 and has since grown to have over 900 locations across the United States, Canada, and Mexico.
Bed Bath & Beyond’s product offerings range from basic bedding, bath towels, and kitchenware to high-end home furnishings and décor items. The company also owns and operates several other retail brands, including Buy Buy Baby, Cost Plus World Market, and Harmon Face Values. Bed Bath & Beyond is known for its extensive product selection, competitive pricing, and frequent coupon offers.
Why did Bed Bath and Beyond drop?
With years of declining sales, inventory constraints and failure to connect with shoppers’ changing habits, the reasons behind the downfall of Bed Bath & Beyond are myriad. But the end result is clear: after half a century in business, the company is on the brink of survival.
Despite generating $12 billion in sales in 2018 and having over 1,500 locations, by 2022, it had lost half its sales and half its stores, with only $6.21 billion in revenue and 771 stores remaining. The company’s market value has plummeted from $17 billion in 2014 to less than $212.4 million today.
What is the total debt of Bed Bath and Beyond?
Total debt on the balance sheet as of November 2022 : $3.63 B. According to Bed Bath & Beyond’s latest financial reports the company’s total debt is $3.63 B. A company’s total debt is the sum of all current and non-current debts.
Who owns Bed Bath and Beyond?
Bed Bath & Beyond is a publicly traded company, which means that it is owned by its shareholders who own shares of the company’s stock. As of my knowledge cutoff date of September 2021, Bed Bath & Beyond’s largest shareholders were institutional investment firms and mutual funds.
However, the company does have a board of directors and executive leadership team who oversee its operations and make strategic decisions for the company. As of September 2021, Bed Bath & Beyond’s CEO was Mark Tritton, who had been in the role since November 2019.
Who is the largest shareholder of Bed Bath and Beyond?
Who is the largest shareholder of Bed Bath & Beyond? The largest shareholder of Bed Bath & Beyond is Davis Selected Advisers LP, according to MarketScreener. This investment company reportedly owns 14.81 million shares in the retailer, resulting in an 18.4% stake.
How many stores does Bed Bath and Beyond have 2023?
Earlier this year, Bed, Bath & Beyond announced it would be shuttering 87 stores in 2023 in an effort to stave off bankruptcy. The chain closed 150 locations last year, while laying off thousands of workers. The company now has 360 locations, Business Insider reported.