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The end is near for the massive U.S. retailer Bed Bath & Beyond after shockingly low sales during the last holiday season of 2022.
The company has officially filed for Chapter 11 bankruptcy protection. The company tried and failed to raise cash to cover costs to keep the store afloat.
In a statement, the company announced, “Bed Bath & Beyond Inc. today announced that it and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
Bed Bath & Beyond Files For Bankruptcy And Plans To Close Its Retail Stores https://t.co/q14I0dHI8X pic.twitter.com/I1HTvSBzpF
— Forbes (@Forbes) April 23, 2023
“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 statement continued.
“Through the filing of customary motions with the Court, the Company intends 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.”
Bed Bath & Beyond has filled for bankruptcy
Go WOKE Go BROKE pic.twitter.com/derQvGgtle
— Vince Langman (@LangmanVince) April 23, 2023
Loyal Bed Bath & Beyond customers ‘devastated’ after bankruptcy filing https://t.co/lhy4DEeHTA pic.twitter.com/fFsgxY1dQ7
— New York Post (@nypost) April 23, 2023
More on this story via Fox News:
The company went on to say that it may abandon plans to close stores in the event of a successful purchase agreement. Nevertheless, it is moving forward with sales of remaining stock, while “strategically managing inventory to preserve value.”
Bed Bath & Beyond closed 150 stores in 2022, and more closures were scheduled for 2023.
The company announced an effort 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.
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CEO Sue Gove issued a statement thanking the company’s longtime customers and associates on Sunday.
“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. Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY,” she wrote. “We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process.”