Bed Bath & Beyond Files for Chapter 11 Bankruptcy Protection Due to Poor Sales Performance During 2022 Holiday Season
April 23, 2023
Home goods retail giant Bed Bath & Beyond has filed for Chapter 11 bankruptcy protection after failed attempts to keep the company afloat. The company's poor sales performance during the 2022 holiday season led to the filing, despite last-ditch efforts to raise funds to cover costs.
Bed Bath & Beyond announced that it and some of its subsidiaries have filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. The filing is intended to facilitate an orderly wind down of the business while conducting a limited marketing process to solicit interest in the sale of some or all of its assets.
The company's 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers while the company begins its efforts to effectuate the closure of its retail locations. Bed Bath & Beyond intends to uphold its commitments to customers, employees, and partners, including continuing payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors.
The company may abandon plans to close stores if a successful purchase agreement is reached. However, it is moving forward with sales of remaining stock while strategically managing inventory to preserve value. Bed Bath & Beyond closed 150 stores in 2022, and more closures were scheduled for 2023.
Bed Bath & Beyond attempted to raise $1 billion in February to stay afloat and prevent a bankruptcy filing, but the effort brought in just $360 million. Another fundraising effort in March aimed for $300 million but resulted in just $48 million.
CEO Sue Gove expressed gratitude towards the company's long-time customers and associates, emphasizing that the company will remain steadfastly determined to serve them throughout the bankruptcy process.
Members of LevelFields received the alert of this event on April 24, 1:00 AM ET
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