London Daily

Focus on the big picture.

Bed Bath & Beyond, described as a 'US institution', files for bankruptcy protection

Bed Bath & Beyond, described as a 'US institution', files for bankruptcy protection

One commentator described the business as an "institution" but added: "Unfortunately, being an institution doesn't protect you from financial woes".
Bed Bath & Beyond has filed for bankruptcy protection in the US, following years of falling sales, financial losses and failed recovery efforts.

The homeware chain made the filing in the US District Court in New Jersey, saying it will start to wind down its operations while seeking a buyer for some or all of its businesses.

It anticipates closing all stores by the end of June, but meanwhile its 360 Bed Bath & Beyond stores and 120 Buy Buy Baby stores and website will do business as usual.

The company employs 14,000 workers, according to the court filing, although this is down from the 32,000 employees it had in February 2022.

Neil Saunders, managing director of GlobalData Retail, said: "It's the death of an icon - a lot of people have grown up with it.

"It's an institution in retailing but unfortunately being an institution doesn't protect you from financial woes."

Bed Bath & Beyond was founded in 1971 and it became known for its huge range of sheets, towels and gadgets.

But in the last decade, it struggled - its messy assortments, lack of online strategy and stiff competition from Target and Walmart saw weak sales.

It recruited Target executive Mark Tritton in 2019 but his ideas - reducing coupons and introducing store label brands instead of national labels - failed to reverse the decline.

When the COVID-19 pandemic forced most stores to close, many put their resources into online operations - but Bed Bath & Beyond did not manage this. It was also badly hit by supply chain issues, which affected its stocks of kitchen appliances and electronics.

In August, it announced a plan to close 150 of its stores and cut workforce by 20%, as well as saying it had lined up more than $500m of new financing - but even this was not enough to halt its downfall.

It issued a number of warnings about potential bankruptcy this year, including saying in January that it was in default of its loans.

A year ago its shares were trading at around $17 but on Monday they were around 30 cents.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
Israel Warns France of Iranian Threats at Paris Olympics
Possible Successors to Rishi Sunak as Conservative Party Leader
Olaf Scholz to Run for German Chancellor Again in 2025
TikTok Fined by UK Regulator for Child Safety Data Reporting Failures
Miracle Baby Born After Gaza Airstrike
Global Tech Outage Caused by Bug in CrowdStrike's Software
Ukrainian FM Open to Peace Talks with Russia, China Reports
EU to Transfer Interest from Frozen Russian Funds to Ukraine
Greenpeace Co-Founder Paul Watson Arrested in Greenland
EU Relocates Summit to Punish Hungary over Orban's Ukraine Visit
Netanyahu Seeks Meeting with Trump During Washington Visit
World's Hottest Day Recorded on July 21
UK Labour Government To Halt Migrant Housing on Accommodation Barge
President Biden Returns to White House After Testing COVID Negative
Trump Says Kamala Harris Would Be Easier Election Opponent Than Biden
Thousands Protest in Mallorca Against Mass Tourism
Immigration Crackdown Targets Car Washes and Beauty Sector
Nigeria's Controversial Return to Colonial-Era National Anthem
Hacking Vulnerabilities: Androids vs. iPhones
Ukraine Crisis Should Be EU's Responsibility, Says Trump’s Envoy
A Week of Turmoil: Key Moments in US Politics
Barrow's Sacred Heart Primary School Faces Long-Term Closure
German National Sentenced to Death in Belarus
Elon Musk's Companies Drop CrowdStrike After Global Windows 10 Outage
US Advises India on Russian Ties Amid Geopolitical Shifts
Trump Pledges to End Ukraine Conflict if Reelected
Global IT Outage Unveils Digital Vulnerabilities
Global IT Outage Sparks Questions About Financial Accountability
CrowdStrike Bug Affects 8.5 Million Windows Devices
Flights Resume After Major Microsoft Outage
US Criticizes International Court's Opinion on Israeli Occupation
CrowdStrike Update Causes Global IT Outage Due to Skipped Quality Checks
EU’s Patronizing Attitude Towards Africa Revealed
Netanyahu Denounces World Court Ruling on Israeli Occupation
Adidas Drops Bella Hadid Over Controversy
Global Outage Caused by CrowdStrike Update Impacts Millions
Massive Flight Cancellations Across the U.S. Due to Microsoft Outage
Global Windows Outage Causes Chaos Across Banks, Airlines, and More
Russia Accuses Ukraine of Using Chemical Weapons
UK's Flawed COVID-19 Planning Exposed by Inquiry
Ursula von der Leyen Wins Second Term as European Commission President
Police Officer Injured in Attack in Central Paris
Hulk Hogan absolutely tore it up at the RNC.
Paris is being "cleansed" of migrants and homeless people ahead of the Olympics.
Lamine Yamal arriving at his school after winning the Euros
Campaigners Urge UK Government to Block Shein's London IPO
UK Labour Government's Legislative Agenda
UK Labour Government to Regulate Powerful AI Models
Record Heat Temperatures in Ukraine Amid Power Crisis
UK Government Plans to Remove 92 Hereditary Peers from House of Lords
×