Bed, Bath & Beyond Has Reportedly Filed For Bankruptcy Following Poor Holiday Sales

After unsuccessful last-minute efforts to sustain the company, Bed Bath & Beyond has filed for Chapter 11 bankruptcy protection.

Since January, the home goods retail store has been cautioning about possibly filing for bankruptcy owing to its dismal sales during the 2022 holiday season. Unfortunately, its attempts to generate funds to meet expenses were unsuccessful over the weekend.

“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,” the company said in a statement.

In the event of a successful purchase agreement, the company expressed its willingness to halt its plans to close stores. However, it is currently proceeding with the sale of its remaining inventory while taking strategic measures to preserve its value.

The statement continued, “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. 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.”

In early February, the company made an announcement about its plan to collect $1 billion to avoid bankruptcy and sustain its operations, but it only managed to generate $360 million. Similarly, in March, the company aimed to raise $300 million but only secured $48 million.