New York CNN—
Bed Bath & Beyond, a store that sold nearly everything in your home in the 1990s and 2000s, filed for Chapter 11 bankruptcy on Sunday.
"Thank you to all of our loyal customers. We have made the difficult decision to begin scaling back our operations," a statement at the top of the company's website said Sunday morning.
The company's 360 Bed Bath & Beyond stores and 120 buybuy BABY stores will remain open for now, as will the website. The company took a $240 million loan during bankruptcy to fund its operations.
However, store closure sales will begin on Wednesday, with Bed Bath & Beyond closing some stores. How much -- or what happens to its 14,000 employees -- depends on what happens next.
Filing for bankruptcy does not necessarily mean that the company ceases operations. Many large U.S. companies have filed for bankruptcy, using it to reduce debt and other expenses they cannot afford. But even if Bed Bath and Beyond emerges from bankruptcy, its future isn't guaranteed.
The company said it would seek to sell some or all of the business. Bed Bath & Beyond will stop closing stores if it can find a buyer. But if a buyer doesn't come, Bed Bath & Beyond could liquidate entirely and go out of business.
GlobalData Retail analyst Neil Saunders said the company could also emerge from bankruptcy as an online-only retailer.
"Ultimately, if Bed Bath & Beyond emerges from bankruptcy, it will be a far less shadow than it was," he said.
Bed Bath & Beyond is the crown jewel of the era of so-called "category killers" -- chains that dominate retail categories like Toys 'R' Us, Circuit City and Sports Bureau. Those companies, too, eventually filed for bankruptcy as customers shifted from big box specialty stores to online options like Amazon.
Chris Hammons unloads a bag of items she purchased at the Bed Bath & Beyond store in Dallas, Texas, September 23, 2009.
Bed Bath & Beyond is known for its massive store stacked floor-to-ceiling with pots and pans, towels and sheets — and the ubiquitous 20% off coupon. thisblue and white couponsThey became icons of pop culture, and millions of Americans ended up stashing them in cars, closets, and basements.
Customers will use the remaining 20% off coupons on Sundays, Mondays and Tuesdays, the company said. The company will stop accepting them on Wednesday. Instead, Bed Bath & Beyond is looking to offer "deep discounts" on its products during its clearance sale.
The retail industry attracts a wide range of customers by selling brands at discounted prices. Brands want a place on the Bed Bath & Beyond shelf because they know it will generate huge sales. In addition, the open store layout encourages impulse buying: customers come in with new items and leave with pillows, towels and other items.
During winter break, back-to-school and college season, these stores are the go-to place for shoppers, and Bed Bath & Beyond also has a strong baby and wedding registry business.
But the New Jersey-based company has been slow to respond to market changes and has struggled to attract customers who have turned to Amazon, Target and other chains.
Bed Bath & Beyond said in its bankruptcy filing that it has $5.2 billion in debt and $4.4 billion in assets. It secured $240 million in financing on Sunday to stay afloat long enough to close its stores and cease operations.
The company is encouraging shoppers to look for discounted items later in the week. Items purchased before Wednesday may be returned until May 24, but all sales after Wednesday will be final. The store will stop accepting gift cards on May 8.
supermarket age
In 1971, Warren Eisenberg and Leonard Feinstein, two veterans of discount retailing in Springfield, New Jersey, started a small chain of linen and bathroom stores— — then known as Bed 'n Bath — initially selling designer bedding in the Northeast and California became the new trend of the day. Unlike department stores, it doesn't rely on sales to attract customers.
The company changed its name to Bed Bath & Beyond in 1987 to reflect its expanded merchandise and larger "supermarket". The company, which went public in 1992, has 38 stores and approximately $200 million in sales.
"We've seen upheaval in department stores and know specialty stores will be the next wave of retail," Feinstein said.He said1993 "This was the beginning of a design approach to bedding and homeware where we saw a real opportunity."
Customers browse their shopping carts at a Bed, Bath & Beyond store in New York on January 18, 1994.
By 2000, those numbers had ballooned to 241 stores with $1.1 billion in annual sales. Bed Bath & Beyond's 1,000th store opened in 2009, when the chain was generating $7.8 billion in annual sales.
This company is a bit of an iconoclast. He spent little money on advertising, relying instead on printed coupons distributed in the weekly magazine to attract customers.
“Why don’t you just tell the customer we’re going to discount what you want — not what we want to sell? We’re going to mail a coupon and it’ll be much cheaper,” Eisenberg told The New York Times in 2020 when said.
The chain is known for giving store managers autonomy over which products to stock, allowing them to customize their stores and shipping products directly to stores instead of a central warehouse.
The rise of online shopping
But as brick-and-mortar stores began to give way to e-commerce, Bed Bath & Beyond was slow to transform — a mistake exacerbated by the fact that home improvement is one of its most commonly purchased categories on the internet.
"We missed the opportunity on the Internet," Eisenberg saidHe saidIn a recent interview with The Wall Street Journal. (The co-founders are no longer with the company.)
Online shopping is also undermining the appeal of coupon hit Bed Bath & Beyond, as consumers can find many cheaper alternatives on Amazon or browse a wider selection on sites such as Wayfair(Four).
But it wasn't just Amazon and online shopping that put Bed Bath & Beyond out of business.
walmart(UTC), Target(TGT)i costco(cost)It has grown over the past decade and has successfully attracted Bed Bath & Beyond customers with lower prices and a wider assortment. Discount chains like HomeGoods and TJ Maxx have also cut prices on Bed Bath & Beyond.
Bed Bath & Beyond's sales were flat between 2012 and 2019, without distinguishing between lower prices or a wider selection.
Customers look for cleaning supplies while shopping at a Bed Bath & Beyond store in New York, April 13, 2011.
Then, in 2020, the pandemic hit. The company has temporarily closed all of its stores, while rivals it considers "core retailers," such as Walmart, remain open. Sales are down 17% in 2020 and 15% in 2021.
Additionally, Bed Bath & Beyond has gone through several different management and turnaround strategies in recent years.
Former Target CEO Mark Tritton took the helm in 2019, backed by investors and a bold new strategy. Reduce coupons and inventory on national brands in favor of Bed Bath & Beyond brands.
But the change has alienated customers loyal to the big brands. The company also delayed paying suppliers, and stores didn't have enough merchandise to stock their shelves. Triton steps down as CEO in 2022.
The fight to avoid bankruptcy
Krevet Bath＆Beyond(BBY)It has been on the brink of bankruptcy for months.
In February, it avoided bankruptcy by completing a complex stock offering that gave it an immediate cash injection and promised more future financing to pay down debt. The offering is backed by private equity group Hudson Bay Capital.
But Bed Bath & Beyond said so last monthget the job doneFuture funding with Hudson Bay Capital and turning to public markets to try and raise capital.
The company also cut jobs to save money. said to happen earlier this yearshut upAbout 400 locations, but will have profitable stores in major markets.
company trying to save moneyno severance payCertain workers who were laid off due to store closures.
Bed Bath & Beyond laid off 1,295 workers in New Jersey this month, days after a new New Jersey law went into effect requiring severance pay -- the equivalent of one week's wages for every year worked -- for laid-off workers.
However, none of these moves were enough to prevent the collapse of the once dominant chain.
I Bed Bath & Beyond is the latest retailer to file for bankruptcy this year. Retail bankruptcies are piling up as interest rates rise and discretionary spending slows.
David's Bridal, Party City, Tuesday Morning, mattress maker Serta Simmons and pet retailer Independent Pet Partners have filed for bankruptcy in recent weeks.
FAQs
Bed Bath & Beyond plans to liquidate all inventory and go out | CNN? ›
Bed Bath & Beyond plans to liquidate all inventory and go out of business. WWAY News. NEW YORK (CNN) — Bed Bath & Beyond, the store for seemingly everything in your home during the 1990s and 2000s, filed for bankruptcy on Sunday. “Thank you to all of our loyal customers.
What caused the downfall of Bed Bath & Beyond? ›The $11.8 billion Bed Bath & Beyond spent on its own stock since 2004 comes to more than twice the $5.2 billion in debt it had on its books in its most recent SEC filing, a debt load that proved crushing for the company.
What will happen to Bed Bath and Beyond? ›The company filed for bankruptcy Sunday and said it will begin closing its remaining 360 Bed Bath & Beyond stores and 120 buybuy Baby locations. Bed Bath & Beyond already has closed 400 stores over the past year. Already, chains including TJ Maxx, HomeGoods and Ross have scooped up some vacant stores.
Is Bed Bath and Beyond losing business? ›With the shelves bare and coupons almost useless, Bed Bath & Beyond finally succumbed to what industry experts say was a long time coming. On Sunday, the housewares chain filed for Chapter 11 bankruptcy protection and announced it would close all its stores, shedding thousands of workers.
What mistake did Bed Bath and Beyond make? ›Bed, Bath and Beyond filed for bankruptcy this week, according to CNN, forcing it to close 360 stores, with its most consequential failure being the $11.8 billion it has spent since 2004 to buy back its own shares.
Is Bed Bath Beyond in trouble? ›Editor's note, April 24: Bed Bath & Beyond filed for Chapter 11 bankruptcy on Sunday, April 23. It plans to begin closing stores — and rolling out closing sales — on Wednesday, April 26, at which point all sales will be final.
What is the Bed Bath and Beyond scandal? ›NEW YORK, March 31 (Reuters) - Bed Bath & Beyond Inc (BBBY. O) was sued on Friday by Mark Tritton, who was ousted last June as chief executive of the troubled home goods retailer, in a complaint accusing the company of failing to honor his $6,765,000 severance agreement.
Should I sell my Bed Bath and Beyond stock? ›InvestorsObserver is giving Bed Bath & Beyond Inc (BBBY) an Analyst Rating Rank of 1, meaning BBBY is ranked higher by analysts than 1% of stocks. The average price target for BBBY is $1.283 and analyst's rate the stock as a Sell. Wall Street analysts are rating BBBY a Sell today.
Does Bed Bath and Beyond have a lot of debt? ›It has already committed to closing all of its Harmon FaceValue stores. As of late November, Bed Bath had about $4.4 billion in assets and $5.2 billion in debts, court filings show.
Is Buy Buy Baby going out of business 2023? ›The company officially filed for bankruptcy on April 23rd, 2023; along with their online store, all 360 physical locations across the US and Canada will be liquidating their inventories and eventually closing permanently—though they'll remain open for a little while longer to allow time for customers to continue making ...
Who is Bed Bath and Beyond biggest competitor? ›
Bed Bath & Beyond competitors include Wayfair, Kohl's, Lowe's Home Improvement, J. C. Penney and Container Store . Bed Bath & Beyond ranks 4th in Product Quality Score on Comparably vs its competitors.
Who owns the most stock in Bed Bath Beyond? ›Who is the largest shareholder of Bed Bath & Beyond? The largest shareholder of Bed Bath & Beyond is Davis Selected Advisers LP, according to MarketScreener. This investment company reportedly owns 14.81 million shares in the retailer, resulting in an 18.4% stake.
Who sold all their Bed Bath & Beyond stock? ›RC Ventures, the firm run by activist investor Ryan Cohen, has sold its entire Bed Bath & Beyond stake for $178 million.
What happened to the CEO of Bed Bath & Beyond today? ›Arnal "appeared to suffer from injuries indicative from a fall from an elevated position," the NYPD said in a statement. The New York City Medical Examiner's Office told NPR on Sunday that it had determined the death was a suicide.
What was Bed Bath and Beyond original name? ›Troubled meme stock Bed Bath & Beyond (BBBY) stock is rising today. This is likely due to ongoing social media hype.
How high will Bed Bath and Beyond stock go? ›Bed Bath & Beyond Inc (OTC Pink - Current Information:BBBYQ)
The 3 analysts offering 12-month price forecasts for Bed Bath & Beyond Inc have a median target of 2.00, with a high estimate of 4.00 and a low estimate of 2.00.
Bed Bath and Beyond is firing CEO Mark Tritton because of crashing retail sales. Retail giants have had a particularly hard start to 2022 as supply chain stress and heightened gas costs have cut into sales revenue.
How many people did Bed Bath and Beyond lay off? ›The company laid off more than 1,000 workers in the state days before a new severance law took effect. Laid-off workers at previously shuttered stores received severance packages, and so Zaccagna assumed it would be the same for her store.
How many layoffs does Bed Bath and Beyond have? ›
Bed Bath & Beyond initially announced it would lay off nearly 1,300 workers effective April 9, the day before the expanded law goes into effect.
What is the sister company to Bed Bath and Beyond? ›The www.bedbathandbeyond.com web site (the "Site") is owned, operated and maintained by Bed Bath & Beyond Inc., the parent company to the group of subsidiaries that operate retail store chains under the names Bed Bath & Beyond, Harmon and Harmon Face Values, and buybuy BABY.
What is the stock price forecast for BBBY in 2024? ›Future price of the stock is predicted at 14.338180772502$ (5500.852% ) after a year according to our prediction system. This means that if you invested $100 now, your current investment may be worth 5600.852$ on 2024 June 01, Saturday.
Should I sell when stocks are high? ›It really depends on a number of factors, such as the kind of stock, your risk tolerance, investment objectives, amount of investment capital, etc. If the stock is a speculative one and plunging because of a permanent change in its outlook, then it might be advisable to sell it.
How much is bed bath and beyond shorted? ›Bed Bath & Beyond is a heavily shorted stock with a short interest ratio, according to highshortinterest.com, of 47%.
Who does bed bath owe money to? ›| Company | Role in supply chain | Amount owed |
|---|---|---|
| Personalization Mall | Merchandise supplier | $11.1 million |
| National Tree Company | Merchandise Supplier | $4.5 million |
| North American Corporation | Distribution and packaging services | $4.4 million |
| FedEx | Parcel delivery | $3.9 million |
Bed Bath & Beyond said it secured a commitment of roughly $240 million in financing from Sixth Street Specialty Lending, Inc. to allow it to keep operating during the bankruptcy process.
What business is going out of business in 2023? ›Bed Bath & Beyond is closing all 360 of their stores.
After struggling for years, Bed Bath & Beyond filed for bankruptcy and is winding down operations. They're closing all of the 360-or-stores left, and holding Bed Bath & Beyond liquidation sales. Every Bed Bath & Beyond location will close by June 30, 2023.
Bed Bath & Beyond is closing all of their remaining 360 stores. But they won't be empty for long.
Are all Bye Bye Babies closing? ›The company said it would begin liquidation sales for all 120 buybuyBABY stores, although closing dates have yet to be determined. The retail stores and websites will remain open as the company begins “winding down” operations, according to buybuyBABY's website.
Which is cheaper Target or Bed Bath and Beyond? ›
Bed Bath & Beyond is generally considered to be a higher-end store than Walmart or Target, and as such, the prices of items at Bed Bath & Beyond are often higher than those at these other stores.
Is Walmart a competitor for Bed Bath and Beyond? ›A slew of competitors are poised to fill the void left by Bed Bath & Beyond as the retailer continues to liquidate. State of play: Walmart, Target and Dollar Tree had the most overlap with Bed Bath in terms of foot traffic, according to analytics firm Placer.ai.
Who is Bath and Body Works biggest competitor? ›Bath & Body Works main competitors are Abercrombie & Fitch Co, Gap Inc., and Victoria's Secret. Competitor Summary. See how Bath & Body Works compares to its main competitors: Macy's has the most employees (130,000).
Did Goldman Sachs buy BBBY? ›On May 11, 2023 - Goldman Sachs Group Inc filed a 13F-HR form disclosing ownership of 1,227,535 shares of Bed, Bath & Beyond Inc. (US:BBBY) valued at $524,648 USD as of March 31, 2023.
How much is the owner of Bed Bath and Beyond worth? ›The estimated net worth of Leonard Feinstein is at least $252,205 dollars as of 2023-05-22. Leonard Feinstein is the Co-Chairman of Bed Bath & Beyond Inc and owns about 1,424,888 shares of Bed Bath & Beyond Inc (BBBYQ) stock worth over $252,205.
How many shares of BBBY are outstanding? ›Number of shares outstanding as of May 2023 : 90,708,000
According to Bed Bath & Beyond's latest financial reports and stock price the company's current number of shares outstanding is 90,708,000. At the end of 2022 the company had 90,708,000 shares outstanding.
tap here to see other videos from our team. Jake Freeman, an applied mathematics and economics major at the University of Southern California, acquired nearly five million shares in Bed Bath & Beyond Inc.
Does Ryan Cohen still own BBBY stock? ›Last year, the activist investor purchased more than 7 million shares of BBBY at an average price of $15.34, plus call options. In August, Cohen then sold out of his entire stake at prices ranging between $18.68 and $29.22. Cohen also sold his call options.
Who was the owner of Bed Bath and Beyond killed? ›The early September death of Gustavo Arnal, the former CFO of troubled retailer Bed Bath & Beyond, shocked the business community. The 52-year-old executive fell from the 18th floor of a Manhattan skyscraper on Sept. 2 in what has been ruled a suicide.
What price did Ryan Cohen buy Bed Bath and Beyond? ›The GameStop chairman and meme-stock champion spent $121 million to buy 7.8 million Bed Bath & Beyond shares, and call options on a further 1.7 million shares, in the first quarter of this year.
How much is the CFO of Bed Bath and Beyond worth? ›
The estimated net worth of Gustavo Arnal is at least $39,867 dollars as of 2023-05-13. Gustavo Arnal is the EVP, CFO of Bed Bath & Beyond Inc and owns about 255,396 shares of Bed Bath & Beyond Inc (BBBYQ) stock worth over $39,867.
What is the Japanese equivalent of Bed Bath and Beyond? ›Nitori is a chain of Japanese home furnishings and housewares stores.
Does Bed Bath and Beyond own Christmas tree shops? ›Christmas Tree Shops, the discount home-goods chain spun out by Bed Bath & Beyond in 2020, is preparing to file for bankruptcy as early as this weekend, according to people familiar with the matter.
When was Bed Bath and Beyond at its peak? ›Over the years the company hugely expanded the goods it had on offer to include everything from bed linen to electric appliances. At its peak in the 2010s, Bed Bath & Beyond was the largest home furnishing retailer in the US, with more than 970 stores across all 50 states.
Is Bed Bath and Beyond in trouble financially? ›Bed Bath's retail problems are a money problem: The company has $1.7 billion of long-term debt, and it needs cash to invest in a turnaround. Yet it's been spending a lot of money on stock buybacks, meaning repurchasing its own shares instead of using that money to invest in the company elsewhere.
Who is Bed Bath and Beyond competitor? ›Bed Bath & Beyond competitors include Wayfair, Kohl's, Lowe's Home Improvement, J. C. Penney and Container Store . Bed Bath & Beyond ranks 4th in Product Quality Score on Comparably vs its competitors.
Can you still use Bed Bath and Beyond gift cards? ›Bed Bath & Beyond Gift Cards do not expire and we do not assess any service fees for non-use.
Where can I use my Bed Bath and Beyond credit card? ›The Welcome Rewards™ store credit card can be used for purchases at Bed Bath & Beyond® and our family of brands. The Welcome Rewards™ Mastercard® credit card can be used for purchases at Bed Bath & Beyond® and our family of brands, as well as anywhere Mastercard® is accepted.
Who owns the Christmas tree shops? › Who is the biggest competitor of Bed Bath and Beyond? ›Bed Bath & Beyond's competitors. Bed Bath & Beyond's competitors and similar companies include The Home Depot, Wayfair, Williams-Sonoma, TJX and Kohl's. Bed Bath & Beyond is an omnichannel retailer that sells a wide assortment of domestics merchandise and home furnishings.
Can I use my Victoria Secret gift card at Bath and Body Works? ›
The Victoria and PINK Cards are private label credit cards that can be used in the following locations: The Victoria's Secret website and apps. All Victoria's Secret & PINK Stores in the United States. Bath and Body Works Stores and website.
Can you use old coupons at Bed Bath and Beyond? ›Bed Bath & Beyond officially stopped accepting the Big Blue coupons on April 26 in order to deeply discount items for closing sales. A day later, Big Lots announced it will honor the now-expired Bed Bath & Beyond coupons through May 7, 2023.
How many times can you use a Bed Bath and Beyond coupon? ›Limit one coupon, Savings Certificate, special offer or discount per item; cannot be combined with a price match. Coupon valid for one use only; electronic copies of physical coupons are treated as one coupon. Any return of purchase will reduce your savings proportionately.
Can I use my Kohl's card at Bed Bath and Beyond? ›No, you cannot use your Kohl's Credit Card everywhere. The Kohl's Credit Card is a retail store card, which means it can only be used in-store at any Kohl's location or for online purchases on the Kohl's website or mobile app.
Can I use my Victoria Secret card at Bed Bath and Beyond? ›The card can only be used at Victoria's Secret brand stores
(Although you won't earn any reward points from Bath & Body Works purchases.) If you don't regularly shop at Victoria's Secret brand stores, you might not get a lot of use out of this credit card.
Yes, the Bed Bath and Beyond Credit Card will do a hard pull. You will need a credit score of at least 640 to get it, which is on par with what most store cards require. There is no way to pre-qualify for the Bed Bath and Beyond Credit Card.
What is the oldest Christmas tree company? ›Christmas is all about family, and so is Puleo International. Known as “The Oldest Name for Christmas Trees in America®,” we are a fourth-generation family-owned manufacturer and distributor of high quality, hand-crafted artificial Christmas trees and home décor.
Where do the Kardashians buy their Christmas trees? ›About the Business:
Aldik Home provides home decor enthusiasts with high-quality silk flowers, silk foliage, floral arrangements, custom artificial trees, home decor, artificial Christmas trees and Holiday decor. This is the place where the Kardashian's do all their Christmas decoration shopping every year!
Aside from Pennsylvania, several U.S. states in the Great Lakes region are key Christmas tree producers. The two most important production areas are Michigan, one of the leading U.S. producers, and Wisconsin. Michigan's Christmas tree industry is worth around $60 million per year.