Last-ditch efforts to save Bed Bath & Beyond failed, and on Saturday the firm filed for Chapter 11 bankruptcy protection.
Since January, the firm has been warning that its unexpectedly low sales during the 2022 Christmas season may force it to declare for bankruptcy. The home goods store’s last-ditch efforts to cover expenses through weekend fundraising activities were unsuccessful.
“Bed Bath & Beyond Inc. today announced that it and certain of its subsidiaries 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 to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets,” the company wrote in a statement.
“The Company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the Company begins its efforts to effectuate the closure of its retail locations,” the statement continued. “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.”
Company officials said that if a sale goes through, shop closures will be scrapped. However, it is continuing to sell off its remaining inventory while “strategically managing inventory to preserve value.”
There were going to be further closures at Bed Bath & Beyond in 2023 after they shuttered 150 shops in 2022.
In early February, the firm launched an endeavor to raise $1 billion to stay afloat and avoid filing for bankruptcy. However, the initiative only raised $360 million. In March, after setting a goal of $300 million, another fundraising drive raised only $48.1 million.
Sunday saw a statement from CEO Sue Gove expressing gratitude to the company’s loyal clientele and employees.
“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. Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY,” she wrote. “We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process.”