- Bed Bath & Beyond doesn’t have the resources to pay off its debts, it said in a filing with the SEC.
- The retailer, which already said it was considering bankruptcy, was informed by JPMorgan Chase & Co. that its debts were due immediately.
- Earlier this month, the retailer listed over 120 stores it plans to close this year, and in the filing it outlined further cost-cutting measures.
Bed Bath & Beyond doesn’t have the “sufficient resources” needed to repay its debts to creditors, the retailer said this week.
In a filing with the Securities and Exchange Commission (SEC) this week, the retailer said it was not able to “repay the amounts under the Credit Facilities,” adding “this will lead the company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.” The retailer already this year said bankruptcy was on the table.
According to the filing, the embattled home goods retailer has defaulted on its loans to JPMorgan Chase & Co., which this week informed executives that its loans were due immediately.
“The news from Bed Bath & Beyond reaffirms that many across the retail industry are struggling to adjust to economic headwinds and changing consumer dynamics in the post-pandemic period,” said Elizabeth Lafontaine, the chief retail analyst for Retail Leader Pro. “Our industry needs large banners to thrive and survive for the health of the entire industry and to properly service consumers across retail.
“Other retail sectors who focus on a particular subset of products, whether it be in essential or non-essential retail, need to ensure that they are meeting the demands of their shoppers and leaning into their specialty or competitive advantage this year to find stability,” she added.
As Retail Leader previously reported, Bed Bath & Beyond earlier this month announced the closure of more store locations nationwide as it grapples with its uncertain future. In total, the retailer on Jan. 10 released a list of more than 120 stores it plans to close this year, which mostly impact its namesake Bed Bath & Beyond stores. Additionally, the retailer owns Buybuy Baby stores and Harmon stores, which will also be affected by store closures. The retailer plans to close six Buybuy Baby stores and two Harmon stores.