Bed Bath & Beyond files for bankruptcy in the US

American homewares retailer Bed Bath & Beyond has filed for bankruptcy as of this week. The company is in US$ 5.2 billion in debt, with assets of just $US4.4 billion.

Bed Bath & Beyond said it voluntarily made the filing “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”.

Its been clear the company has been in trouble following Covid. Bed Bath & Beyond closed over 150 stores last year, and was already set to close 87 in 2023 having dropped 20 percent of its workforce. Late last year CFO Gustavo Arnal committed suicide when he was caught up in a stock fraud lawsuit.

Founded in 1971, the company rose to fame as a pop culture icon in the 1990s and by 2011, Bed Bath & Beyond had 1,142 stores across the globe at its peak.

“Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, setting into a new home to having a baby,” said President and CEO of Bed Bath & Beyond, Sue Gove.

“Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY.

“We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximise value for the benefit of all stakeholders.”

All of the remaining stores are expected to complete closing down by June 30, and around 32,000 workers are set to be effected.

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