Bed Bath & Beyond Files Chapter 11
In the end, the efforts to save Bed Bath & Beyond failed.
The home goods specialty store filed for Chapter 11 bankruptcy protection and will conduct “an orderly wind-down of its business” while also looking to sell off some or all of its assets.
The company has secured $240 million in debtor-in-possession financing (DIP) from Sixth Street Specialty Lending, Inc. Bed Bath & Beyond said this financing will provide the necessary liquidity to support operations during the bankruptcy process. Its 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open as Bed Bath & Beyond works to close its retail locations.
The future of Bed Bath & Beyond has been a topic of discussion across retail, with many expecting the company to file for bankruptcy. Its most recent financial filing revealed on-going struggles for the retailer. For the third quarter ended November 26, Bed Bath & Beyond year-over-year sales were down 33%. Net loss for the quarter was $393 million.
While the company has commenced a liquidation sale, Bed Bath & Beyond officials said they intend to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets. The company has filed motions with the court seeking authority to market Bed Bath & Beyond and buybuy BABY as part of an auction pursuant to section 363 of the Bankruptcy Code.
Alongside these efforts, the company is strategically managing inventory to preserve value. In the event of a successful sale, the company will pivot away from any store closings needed to implement a transaction.
It’s been a tumultuous past several years for Bed Bath & Beyond. Over that time, the company has hired and fired chief executives, launched new initiatives and then quickly changed direction, all in an effort to boost stagnant sales. Its current CEO, Sue Gove, was named to the position in October 2022 to replace Mark Tritton, the former Target executive who was fired in June of 2022.
Tritton joined Bed Bath & Beyond in late 2019 from Target where he served as executive vice president and chief merchandising officer.