Bed Bath & Beyond falls into bankruptcy, begins to wind down business

Bed Bath & Beyond has filed voluntary petitions for relief under Chapter 11 in a US bankruptcy court as it begins to wind down its business, as outlined in a release.

The company did note that its 360 Bed Bath & Beyond stores, its 120 Buybuy Baby stores and its websites will continue to operate and serve customers while the process to close down proceeds.

In the filing, Bed Bath & Beyond said it would be conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.

The process will be facilitated by a commitment of around 240 million dollars in debtor-in-processing financing from Sixth Street Specialty Lending, which, once court approved, is expected to provide the necessary liquidity to support operations throughout the bankruptcy proceedings.

Commenting on the matter, Sue Gove, president and CEO of Bed Bath & Beyond commended employees for supporting the group, adding: “We remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximise value for the benefit of all stakeholders.”

The filing comes after Bed Bath & Beyond attempted to initiate a turnaround plan in late 2022, in a bid to reset parts of its operations and financial positioning.

Now, the group has commenced a liquidation sale as it seeks to market both of its brands as part of an auction pursuant to the Bankruptcy Code.

It also said that it would be “strategically managing inventory to preserve value”, while a successful sale could see it move away from store closures, a dual-path move that it noted would “maximise value”.