Bed Bath & Beyond Says it Can’t Pay Debts

According to an SEC filing, JPMorgan Chase & Co. informed the embattled retailer that its debts were due immediately.
A Bed Bath & Beyond store.
  • 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.


In the Jan. 26 filing, the company said it was taking several measures, including the store closures, to cut costs. Other measures include lowering capital expenditures and negotiating with landlords to “seek reductions in rental obligations.” 

The retailer also this month began another round of layoffs, confirming the cuts to Retail Leader. In the latest filing, Bed Bath & Beyond expressed concerns about its ability to exist during the next year. “Based on recurring losses from operations and negative cash flows from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the company has concluded that there is substantial doubt about the… ability to continue,” the filing said.