Bed Bath & Beyond Files For Bankruptcy Amid Plunging Sales, Online Competition

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Brent Foster Contributor
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American retailer Bed Bath & Beyond announced the voluntary filing of Chapter 11 relief petitions with the New Jersey U.S. District Court in a Sunday press release.

The retailer plans to conduct an “orderly wind down” of operations. 360 Bed Bath & Beyond along with 120 buybuy BABY stores and associated websites are currently set to remain open, the retailer wrote in the release.

Bed Bath & Beyond failed to secure funding after multiple unsuccessful turnaround plans. The retailer listed asset and liability estimates at between $1 billion and $10 billion, the Associated Press (AP) reported.

The release stated Sixth Street Specialty Lending is providing $240 million in financing to help the retailer maintain operations amid the bankruptcy process.

“Millions of customers have trusted us through the most important milestones in their lives,” Bed Bath & Beyond President & CEO Sue Gove said in the release before thanking “associates, customers, partners, and the communities we serve.”

“We will continue working diligently to maximize value for the benefit of all stakeholders,” Gove added. (RELATED: Major Retailer Raises Specter Of Bankruptcy Amid Ongoing Financial Disaster)

The retailer was founded in 1971 and rose to prominence by offering a broader selection of goods in comparison to other department stores, according to the AP.

Weak sales, due in part to a failure to craft an effective online strategy in the face of enhanced competition over the last decade, brought the retailer into a beleaguered financial position, the outlet reported.

In a botched response to the COVID-19 pandemic, Bed Bath & Beyond failed to stock numerous best-selling products in an effort to prioritize store as opposed to national brands. The move further hampered sales, the AP reported.

The bankruptcy process along with the store closings set to follow are anticipated to place thousands of employees at risk of losing their jobs, the outlet reported.