The once mighty home goods retailer Bed Bath & Beyond announced today that it has filed for Chapter 11 bankruptcy, marking the end of nearly 50 years in business.
According to a statement released by the company, Bed Bath & Beyond will begin an “orderly liquidation” of its assets. The company’s remaining stores, including 360 Bed Bath & Beyond locations, 120 Buy Buy Baby stores, and all websites will remain open to serve customers during the bankruptcy proceedings.
The New Jersey-based company has faced significant financial troubles in recent years due to declining sales, strategic missteps, and three CEO changes since 2019. The latest CEO, activist investor Ryan Cohen, sold his entire stake in the company just five months after joining, dealing a major blow to Bed Bath & Beyond’s stock price and viability.
“They had a very specific problem and they were making really bad strategic mistakes,” said Neil Saunders, managing director of GlobalData Retail. “Ultimately, years of internal troubles combined with financial headwinds made filing for bankruptcy seem inevitable.”
Founded in 1971, Bed Bath & Beyond grew into a retail powerhouse over nearly 50 years in business. However, the company struggled to keep up with the rise of e‑commerce and nimbler competitors in recent years. After a failed turnaround effort and dwindling options to raise capital, the once iconic brand was left with no choice but to file for bankruptcy.
Bed Bath & Beyond has secured $240 million in financing to continue limited operations during the bankruptcy process. The company will now embark on an effort to sell off its remaining assets and close unprofitable stores. The bankruptcy filing marks the end of an era for a staple of American retail that spanned generations.
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