Bed Bath & Beyond, the US retailer, has filed for voluntary Chapter 11 bankruptcy amid a rocky start to 2023.
The big-box chain, which sells health and beauty goods alongside domestic merchandise, has been open about its struggles since January, when it expressed “substantial doubts about the company’s ability to continue” following hefty net losses in the run up to the 2022 holiday season.
Investment firm Sixth Street Partners, which previously offered a loan facility to Bed Bath & Beyond, is providing US$240m in debtor-in-possession financing.
Bed Bath & Beyond said the financing would provide the necessary liquidity to support operations during the Chapter 11 process.
It added that it was seeking buyers for some or all of its assets.
The company’s 360 Bed Bath & Beyond stores and 120 buybuy BABY stores and websites will continue to serve customers as it puts into effect the closure of its retail locations.
Both website homepages currently run the message: “Thank you to all of our loyal customers. We have made the difficult decision to begin winding down our operations.
“Bed Bath & Beyond and buybuy BABY stores remain open to serve you.”
Bed Bath & Beyond intends to close all of its remaining stores by the end of June, but it added that, in the event of a successful sale, it would pivot away from any store closings needed to implement a transaction.
“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,” said Sue Gove, President & CEO of Bed Bath & Beyond Inc.
“Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY.
“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 maximise value for the benefit of all stakeholders.”
Founded in New Jersey in 1971, the retailer ran almost 1,500 stores across the US in its 2010s heyday.
But the past 12 months have been tumultuous for Bed Bath & Beyond with activist investor Ryan Cohen’s venture firm dumping its Bed Bath & Beyond stock in August and the death by suicide of CFO Gustavo Arnal in September.
At the close of March, former CEO Mark Tritton, who was ousted from the company in June last year, filed a complaint accusing the company of failing to honour his severance agreement.