Bed Bath & Beyond files for Chapter 11 bankruptcy

Home goods retail store, Bed Bath & Beyond, has filed for Chapter 11 bankruptcy protection after its last-minute attempts to raise cash to cover costs failed. The company had warned about the possibility of bankruptcy since January due to the shockingly poor sales during the 2022 holiday season. The company will conduct a limited marketing process to solicit interest in one or more sales of some or all of its assets. The company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the company begins its efforts to effectuate the closure of its retail locations. The company plans to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors. If successful in its purchase agreement, the company may abandon its plans to close stores. Nevertheless, it is moving forward with sales of remaining stock while strategically managing inventory to preserve value. The company closed 150 stores in 2022, and more closures were scheduled for 2023. The company announced efforts in early February to raise $1 billion to stay afloat and prevent a bankruptcy filing, but the effort brought in just $360 million. Another fundraising effort in March set a target for $300 million but resulted in just $48 million. CEO Sue Gove issued a statement thanking the company's longtime customers and associates on Sunday, expressing the company's determination to serve them throughout the bankruptcy process.