Bed Bath & Beyond announced this past week that it filed for Chapter 11 bankruptcy protection after the company failed several attempts to raise enough funding to stay afloat. But Bed Bath & Beyond has been warning about a potential bankruptcy since early January after issuing a going concern notice that it may not have the cash to cover expenses after a dismal holiday season.
The company shares had closed at $0.29 on Friday with a market valuation of $136.9 million. For now, Bed Bath & Beyond’s 360 namesake stores and the 120 Busboy Baby locations are going to remain open for now as it is beginning to close the business and liquidate the assets. Bed Bath & Beyond has filed motions in a New Jersey bankruptcy court asking permission to auction the 2 brands. Bed Bath & Beyond also already committed to closing all of its Harmon FaceValue stores.
Bed Bath & Beyond has a long list of creditors including vendors such as Pinterest, Keurig, and Blue Yonder according to court documents. BNY Mellon alone is owed $1.18 billion, the documents show. In total, Bed Bath & Beyond has between 25,001 and 50,000 total creditors.
Sixth Street is going to lend Bed Bath & Beyond $240 million in debtor-in-possession financing so that the company can have the cash flow necessary for supporting operations through bankruptcy.
Holly Etlin, a partner and managing director with advisory group AlixPartners, has been appointed as Bed Bath’s CFO and chief restructuring officer.
At the end of March, Bed Bath & Beyond issued a stock offering with the hope of raising $300 million. But this news led to a major stock price drop even more. As of April 10, Bed Bath & Beyond sold about 100.1 million shares – which brought in only $48.5 million.
What does this mean for customers? The company initiated a process to wind down operations.
As of today:
– Bed Bath & Beyond expects to process returns and exchanges in accordance with our usual policies until May 24, 2023, for items purchased prior to April 23, 2023.
– Bed Bath & Beyond expects Gift Cards, Gift Certificates, and Loyalty Certificates will be accepted through May 8, 2023.
– Bed Bath & Beyond will no longer accept coupons or Welcome Rewards+ discounts beginning April 26, 2023.
– Bed Bath & Beyond expects all in-stock orders placed online both prior to and after the company’s bankruptcy filing to be fulfilled at this time.
– Your registry data is safe and you can still view your registry at this time. And Bed Bath & Beyond expects to partner with an alternative platform where you will be able to transfer your data and complete your registry. We will provide details in the coming days.
