Bed Bath & Beyond files for bankruptcy protection, plans to close stores

Bed Bath & Beyond filed for Chapter 11 bankruptcy protection on April 23, after the retailer had failed for months in efforts to raise enough money. The retailer lists $5.2 billion in debts and $4.4 billion of assets in its bankruptcy filing.

Bed Bath & Beyond has secured a $240 million loan from Sixth Street Specialty Lending Inc. to help fund its operations during bankruptcy. On April 26, the retailer plans to start closing 480 stores —  including 360 Bed Bath & Beyond stores and 120 BuyBuy Baby locations — as it attempts to sell assets and look for a buyer throughout the bankruptcy process. The retailer expects all stores to close by June 30, but would abandon plans to close stores in the event of a successful purchase agreement.

“Thank you to all of our loyal customers,” the company said on its website. “We have made the difficult decision to begin winding down our operations.”

“Bed Bath & Beyond is a key name across the retail landscape and holds a lot of value with consumers despite the more recent challenges,” said Elizabeth Lafontaine, chief retail analyst for Retail Leader Pro. “There is a high potential for the brand legacy to continue on through a different business model. As for current operations, the clear winner is the consumer who will be able to find great deals during a time of higher prices across the industry in both home and juvenile products.” 

The retailer will stop accepting coupons on April 26 as well, and will not accept store returns for items purchased after that date. 

"Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and BuyBuy Baby,” Sue Gove, president and CEO of Bed Bath & Beyond said in the release. “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 maximize value for the benefit of all stakeholders."

The struggling houseware goods chain had been closing stores and warning of a potential bankruptcy since early January. In February, the retailer unveiled details of a last-ditch effort to stave off filing for bankruptcy protection. For decades, Bed Bath & Beyond provided essential shopping for the home goods sector. In late 2022, the retailer initiated a turnaround plan to reset foundational elements of its operational and financial positioning, and actions had been underway to improve merchandise assortment, streamline supply chain and optimize its store footprint.

Specialty retailers have struggled in this post-pandemic inflationary climate. In January, Party City filed for Chapter 11 bankruptcy protection along with mattress manufacturer Serta Simmons. Discount home goods retailer Tuesday Morning in February filed for its second bankruptcy in three years, and pet store retailer Independent Pet Partners also filed for bankruptcy protection.  

“When any major player in retail exits the market, there are ramifications across the industry,” Lafontaine said. “Bed Bath & Beyond represents the last major full-line specialty player in both the home and baby industry, which will certainly impact manufacturers and brands in their distribution strategies. The company’s real estate portfolio will also be up for grabs in potential key off mall locations for competitors. Ultimately, it’s another blow for the industry as specialty players are key to a healthy industry and providing ample options to consumers. This will certainly impact how other retailers merchandise and market these categories to consumers in all channels in the near future to try and capture what remaining demand there is.”