Last Update: April 24, 2023, 02:26 AM IST
Bed Bath & Beyond, founded in 1971, has grown to operate stores in all 50 US states as well as Puerto Rico, Canada and Mexico. (Image: Bed Bath & Beyond/Twitter)
Home Goods Chain Files Voluntary Petition for Chapter 11 Relief with the United States Bankruptcy Court for the District of New Jersey
Bed Bath & Beyond filed for bankruptcy on Sunday, consolidating a year-long decline that saw losses exceed a billion dollars annually as the US retailer struggles to adapt to an uncertain economy and the dominance of online shopping. Was doing.
The Home Goods chain filed a voluntary petition for relief under Chapter 11 in the United States Bankruptcy Court for the District of New Jersey, a court filing showed.
The New Jersey-based retailer, a seller of everything from shower curtains and soaps to vacuum cleaners and duvet covers, was a fixture on the Fortune 500 list of the largest American companies.
It said in a statement that it had sought bankruptcy protection “to implement an orderly wind-up of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of the assets.”
Shares of Bed Bath & Beyond plunged in January after it warned of “substantial doubts about the company’s ability to continue as a going concern”, a signal that was widely taken to mean it was headed for bankruptcy. can file for.
The company said at the time that it expected a loss of $386 million in the just-ended quarter.
Despite several attempts at restructuring — including closing 150 of its underperforming stores by 2022 — Bed Bath & Beyond was unable to turn around its declining finances.
It says it has secured a commitment of $240 million in debtor-in-possession financing from a lender to support its operations during the bankruptcy.
The company listed its estimated assets and estimated liabilities as between $1 billion and $10 billion, according to court filings.
The closing sale at the stores will start from Wednesday.
A banner on the company’s website Sunday read, “Thank you to all of our loyal customers.”
“We have made the difficult decision to close our operations.”
Chief Executive Officer Sue Gow said the company “will continue to work diligently to maximize value for the benefit of all stakeholders.”
“Millions of customers have trusted us through some of the most important milestones in their lives – from going off to college to getting married, settling down in a new home to having a baby,” he said in a company statement.
“We deeply appreciate our associates, customers, partners and the communities we serve, and we remain determined to serve them throughout this process.”
The company said that its “360 Bed Bath & Beyond and 120 BuyBy Baby stores and websites will remain open and continue to serve customers as the company begins its efforts to close its retail locations.”
Last September, its chief financial officer Gustavo Arenal died in a fall from a New York skyscraper in what was ruled a suicide.
No date has been fixed for the hearing of the first debtors of the company.
Bed Bath & Beyond, founded in 1971, has grown to operate stores in all 50 US states as well as Puerto Rico, Canada and Mexico.
Due to declining sales last year, the company struggled to keep up with supply in its stores and stock prices plummeted.
While competitors such as Amazon and Target have invested heavily in recent years to improve the online shopping experience, Bed Bath & Beyond has hired Richard McMahon, a former executive at the company who departed in 2015, to “evolve” its business. Told New York to adopt. Times.
“The Internet started getting real and through that process consumer behavior was changing,” he said.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
