Bed Bath & Beyond is an American chain of domestic merchandise retail stores that also started to sell its products online due to the e-commerce boom worldwide.
However, we have seen reports about declining sales and the company looking at options to sell assets, but the new report from Reuters is worrying.
It is reported that Bed Bath & Beyond is looking to file for bankruptcy and will be as soon as this week.
This latest development comes after it was said that Bed Bath & Beyond defaulted on a loan they could not repay.
It is quite possible, Reuters reports, that a last-minute buyer could emerge, but if that is not the case, then the Bed Bath & Beyond brand could be filing for bankruptcy protection.
The chain has already said they are closing 87 of their Bed Bath & Beyond stores and five buybuy BABY stores, apart from the 150 store closures announced last year. In addition, they are also closing the health and beauty discount chain, Harmon.
Bed Bath & Beyond stated to Reuters that they are indeed considering “multiple paths” but did not comment on bankruptcy filings.
Recently, Bed Bath & Beyond reported a loss of about $393 million after declining sales of 33% for the quarter ending November 26, 2022.
It is clear that the brand is not in a healthy state to move forward with its operations; this is why they are filing for bankruptcy and considering options like selling its assets and looking for a buyer.
It is worth noting that Bed Bath & Beyond was thriving a few years back and was considered the go-to destination for couples planning for a baby.
However, their decision to expand into retail outlets backfired, and their sales have not recovered. Their buybuy BABY brand is also struggling; it looks like a buyout or filing for bankruptcy is the only option they have left.
