Bed Bath & Beyond files for Chapter 11 bankruptcy

Bed Bath & Beyond filed for Chapter 11 bankruptcy after failing to secure the funds to survive. All 360 stores nationwide will eventually close, putting 30,000 jobs at risk.

New Jersey-based home goods retailer Union has filed for bankruptcy in a federal district. new jersey Estimates of assets and liabilities range from $1 billion to $10 billion, according to court filings.

Bed Bath & Beyond stores will remain open for the foreseeable future, but the liquidation process will begin and all 360 stores will eventually close.

That means many of our 30,000 employees are facing unemployment.

In a separate statement, Bed Bath & Beyond said it had received a debtor financing commitment of approximately $240 million from Sixth Street Specialty Lending Inc.

Bed Bath & Beyond’s stock has fallen 98% over the past five years.

In October 2022, Sue Gove became President and CEO of Bed Bath & Beyond Inc.

The company added that 360 Bed Bath & Beyond and 120 buybu BABY stores and websites will remain open and will begin efforts to close retail stores.

Bed Bath & Beyond Inc. today announced that it and certain of its subsidiaries have filed a voluntary petition with the United States Bankruptcy Court for the District of New Jersey under Chapter 11 of the U.S. Bankruptcy Code to effect an orderly winddown of its business. announced that it had been submitted. While conducting a limited marketing process to attract interest in one or more sales of some or all of our assets,” the statement read Sunday.

“Our 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will continue to operate and we will begin working to bring retail closures to fruition.”

Sue Gove, President and CEO of Bed Bath & Beyond Inc.

“Our team has worked with an incredible purpose to support and enhance our beloved banners Bed Bath & Beyond and buybu BABY.

“We are deeply grateful to our associates, customers, partners and the communities we serve, and are determined to serve them through this process.

“We remain committed to maximizing value for the benefit of all stakeholders.”

Bed Bath & Beyond warned of possible bankruptcy in early January, issuing a “going concern” notice saying it may not be able to cover its expenses after a difficult holiday season.

Struggling to keep inventory on the shelf due to liquidity issues, some vendors began demanding upfront payment.

Retailers have had to contend with low inventory levels, slow sales and reduced cash reserves.

Bed Bath does not have enough money to pay off its debt and defaulted on a credit line with JP Morgan in January.

We were able to use the funds from the initial public offering to make interest payments, but if the transaction didn’t go as planned, we would likely have to file for bankruptcy and liquidate our assets. I warned you.

In February, the beleaguered company planned to raise about $1 billion through an offering of preferred stock and warrants to avoid bankruptcy.

The company was able to raise $360 million from a complex transaction to help pay off loan defaults and interest on senior debt.

But Bed Bath closed the deal in late March, announcing plans to sell $300 million worth of shares, and again said it could have to file for bankruptcy if it can’t secure the funding. I warned you.

The business once thrived during the pandemic, commanding 1,500 stores across the United States before hitting several years of upheaval.

Bed Bath & Beyond CFO Gustavo Arnal, 52, commits suicide in September 2022

The Union, New Jersey-based home goods retailer became a popular shopping destination in the 1990s for couples registering a wedding or planning a new baby. Demand has fallen in recent years as a merchandising strategy to More store branded products have failed.

Last year’s move to abandon that strategy and bring in more domestic brands that shoppers recognize has shown no signs of effect.

In January, just months after announcing more than $500 million in new funding, job cuts and closing 150 stores, the company questioned its ability to continue as a going concern.

Arnal (right) died after jumping from the 18th floor of Manhattan’s Jenga tower – two days after the company announced plans to lay off thousands of employees and close 150 stores.

Under former CEO Mark Tritton, the company sought to embrace a less “messy” and more organized shopping experience, including implementing “the biggest product assortment change in a generation.”

In 2019, Bed Bath & Beyond sought to adopt a more “cluttered” approach, opting for a simpler, more organized shopping experience.

It implemented the “biggest assortment change in a generation”, reduced product selection and launched its own private label.

While sales surged due to the pandemic, retailers’ newly limited selection of goods exacerbated supply chain problems, emptying shelves and frustrating shoppers.

Sales continued to decline and record-high inflation exacerbated losses.

The company has announced that it will close an estimated 150 stores and cut 20% of its workforce in August 2022.

The retailer’s stock has fallen 87% this year, leaving the company valued at just $138 million on April 21.

Retailers in distress often take advantage of bankruptcy protection after the holiday season to take advantage of cash cushions earned from recent sales.

In February, Bed Bath & Beyond’s Canadian operations were forced out of business, according to court filings. The Canadian division that operates 54 Bed Bath &. Documents posted on the website of consulting firm Alvarez & Co. have been filed that the Beyond store and 11 buybuy BABY stores are insolvent. Marshall indicated.

Bed Bath said in March it was seeking shareholder approval for a reverse stock split ranging from 5-to-1 to 10-to-1, and in early April the board urged shareholders to approve the split. He said he would go bankrupt if the plan failed. imminent.