Bed Bath & Beyond Closing 87 Stores in 30 States as Bankruptcy Filing Nears
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Bankruptcy is looming for Bed Bath & Beyond.
The home store announced that 87 locations nationwide would be closing, and Reuters has learned that the company is also preparing to file for bankruptcy protection. In addition to the closures, five Buybuy BABY stores will also be shutting down, and the company's health and beauty off-shoot Harmon will shut its doors permanently.
The closures will affect 30 states nationwide, USA Today reported, with Florida and California leading the pack with 11 and 10 closures, respectively.
In a business update shared on January 5, the retail chain revealed it had suffered losses of over $385 million for the third quarter of 2022. Its sales for the same quarter were also down, totaling around $1.2 billion compared to $1.8 billion in the third quarter of 2021. CEO Sue Gove said in a statement at the time that the company had a "clear vision for the future" and had "strengthened [its] leadership team" to facilitate the "turnaround" needed.
A source familiar with the situation told Reuters that, as of Monday, the timing of a potential bankruptcy filing was in flux, as the company's advisers remained searching for other potential options.
Investment firm Sixth Street is in talks to provide funding to Bed Bath & Beyond, sources told Reuters, after previously loaning the company $375 million last year.
The store closings could begin as soon as this weekend, a source shared.
The announcement comes after major changes were made in August 2022. One hundred fifty locations were closed nationwide and the company reduced its workforce by 20% after seeing a 26% decrease in same-store sales compared to the same quarter in 2021.
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In 2020, Bed Bath & Beyond closed 40 locations nationwide, and later that year, eased up on its coupon model. Then-chief merchandising officer Joe Hartsig said the company had "an over-reliance on the coupon" at the time, and that about 40% of their promotions were "ineffective."
That news came just days after an important investor sold a major stake in the company, CNN Business reported at the time. Some suppliers had also reportedly halted shipments to Bed Bath & Beyond over unpaid bills.