With the cabinets naked and coupons virtually needless, Bed Bath & Beyond after all succumbed to what trade mavens say was once a very long time coming. On Sunday, the housewares chain filed for Chapter 11 chapter coverage and introduced it will shut all its retail outlets, losing hundreds of employees.
“This company has been in late-stage decline for a while,” mentioned Ted Gavin, managing spouse and founding father of company restructuring company Gavin/Solmonese. “The fact that it lasted as long as it did is the big surprise.”
The Union, N.J.-based store had attempted to stave the inevitable for months. In early January, it posted a $393 million loss for the quarter ended Nov. 26, pushing its fiscal year-to-date losses to greater than $1.1 billion. Over the following few weeks, the corporate mentioned it didn’t have sufficient money to pay off loans. It additionally neglected hobby bills.
In February, after it failed to safe a mortgage, Bed Bath & Beyond was once in a position to dispose of a chapter submitting when it struck a $1 billion share-sale care for hedge fund Hudson Bay Capital Management and different traders. But the plan fell aside closing month when Bed Bath & Beyond disclosed that it anticipated related retailer sales to plunge 40 to 50 % year-over-year within the fourth quarter.
Now that the longtime emblem for milestone buying groceries — school, marriage, young children — is on the right track to shut eternally, right here’s what it way for customers.