People’s favourite retail giant, Bed Bath and Beyond has filed for the Chapter 11 bankruptcy protection in the US.
The retail company Bed Bath and Beyond The Retail Giant Files for Bankruptcy in the US in a statement said that it will ‘implement an orderly wind down of its business’. In this wind up, the company is also set to close its Buy Buy Baby brand, and is planning on closing all 475 of its stores by the end of June. The company further added that it was also seeking buyers for some or even all of its assets.
Bed Bath and Beyond has been facing financial troubles for years, and very recently had also said that it would be cutting jobs and also lose about 150 of its stores.
In March, the retail giant had announced that it would be selling $300m ((£241.1m) worth of its shares. Following this announcement, the executives had also warned that the company would have to file for bankruptcy if they couldn’t secure the funds.
Once a go-to and pretty popular store for all household needs has struggled to keep in touch with the rising trend of online shopping.
What is a Chapter 11 Bankruptcy Protection?
The Chapter 11 protection is something that helps companies to postpone the US company’s obligations to its creditors. This gives time to the companies to re-organize its debts and/or even sell parts of its business.
In regard to this filing to the United States Bankruptcy Court for the District of New Jersey on Sunday, Bed Bath and Beyond said in a statement that, “the past twelve months have undoubtedly been the most difficult and turbulent in the company’s storied history.”
The company also further added that despite its “painstaking, creative, and exhausting efforts to right the ship along the way, Bed Bath and Beyond is simply not able to service its funded debt obligations while simultaneously supplying sufficient inventory to its store locations.”
Recently published notice on the websites of Bed Bath and Beyond and Buy Buy Baby said,” stores will remain open to serve you”. Although it did not offer a timeline as to when the services will cease.
“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,” Bed Bath & Beyond president and chief executive Sue Gove said in a statement.
Reportedly, Bed Bath & Beyond had secured a $240m in financing from a Texas-based Sixth Street Specialty Lending to support the winding down process.
Founded in the year 1971, the company was initially called Bed ‘n Bath and originally sold a narrow range of merchandise. Over the years, it expanded the goods and included everything from bed linen to electric appliances.
The company peaked in 2010s, when Bed Bath & Beyond was one of US’ largest home furnishing retailers and had more than 970 stores across the 50 states.
However, with the rising online shopping trend, the company struggled with dwindling profits. Earlier this year, it had secured more than $500m in new financing, but had said that it would close 150 of its stores and also cut jobs so as to turn the business around.
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