Bed Bath & Beyond filed for Chapter 11 bankruptcy protection Saturday, after attempts to keep the company afloat failed.
The home goods retail store’s last-ditch efforts to raise cash to cover expenditures failed this weekend. Since January, the company cautioned that it may have to file for bankruptcy due to its disappointing sales during the 2022 holiday season.
To facilitate this process, the Company has received a commitment of approximately $240 million in debtor-in-possession financing (“DIP”) from Sixth Street Specialty Lending, Inc. Following court approval, the Company expects this financing to provide the necessary liquidity to support operations during the Chapter 11 process.
The Company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the Company begins its efforts to effectuate the closure of its retail locations. Through the filing of customary motions with the Court, the Company intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors.
Sue Gove, President & CEO of Bed Bath & Beyond Inc. said, “Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby. Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyondand buybuy BABY. 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.”
For decades, Bed Bath & Beyond set the standard across the home goods sector and held its position through many different economic cycles and alongside a continuously evolving customer. In late 2022, the Company initiated a significant turnaround plan to reset foundational elements of its operational and financial positioning to better serve customers, employees, and supplier partners. Actions have been underway to improve merchandise assortment, streamline supply chain, and optimize its store footprint.
While the Company has commenced a liquidation sale, Bed Bath & Beyond Inc. intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets. The Company has filed motions with the Court seeking authority to market Bed Bath & Beyond and buybuy BABY as part of an auction pursuant to section 363 of the Bankruptcy Code. Alongside these efforts, the Company is also strategically managing inventory to preserve value. In the event of a successful sale, the Company will pivot away from any store closings needed to implement a transaction. The Company believes this dual-path process will best maximize value.
Bed Bath & Beyond announced that closing sales will begin on April 26 with deep discounts. Customers can shop online, in stores or using the Bed Bath & Beyond/buybuy BABY app.
Customers should know that all purchases after April 26 will be final. The company said they expect to accept returns and exchanges for items bought prior to April 26 up until May 24.
The Welcome Rewards program will be running through May 15. Customers will be able to redeem points and merchandise credits. Customers will not be given Welcome Rewards on any future purchases following the bankruptcy announcement.
Company gift cards can be used through May 8, but the chain will stop accepting their coupons on April 26.
Membership benefits will end the day closing sales start. Refunds will not be available for membership holders.
Additional information is available at https://restructuring.ra.kroll.com/bbby. Stakeholders with questions can contact the Company’s Claims Agent, Kroll LLC, at [email protected], (833) 570-5355.
