US retailer Bed Bath & Beyond has filed for bankruptcy, according to a court filing and a company statement. The bankruptcy filing came Sunday following a prolonged struggle by the company to stay afloat. The home goods chain filed voluntary petitions for relief under Chapter 11 at the United States Bankruptcy Court for the District of New Jersey, a court filing showed.
The statement added that the action had been taken “to implement an orderly wind-down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
“Thank you to all of our loyal customers,” a banner on the company’s website read Sunday.
“We have made the difficult decision to begin winding down our operations.”
According to a court filing, the Union, New Jersey-based home goods retailer listed its estimated assets and liabilities in the range of $1 billion and $10 billion.
In January, Bed Bath & Beyond raised doubts that it might not be able to continue further. The acknowledgement led to its shares diving since it was seen as a sign that it could file for bankruptcy. The company said at the time that it expected a loss of $386 million in the just-finished quarter. Just a few months before this announcement, it raised more than $500 million in new financing, while also announcing job cuts and 150 store closures.
CEO Sue Gove said the company “will continue working diligently to maximise value for the benefit of all stakeholders.”
“We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process.”
The company further said that 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will continue to serve customers as it begins efforts to effect the closure of its retail locations.
In February, the company planned to raise around $1 billion by offering preferred stock and warrants to avoid bankruptcy. It raised $360 million from the complex deal that helped it pay its loan defaults and interest payments for senior notes.
However, in March, Bed Bath & Beyond terminated the deal and announced plans to sell $300 million worth of its shares. This is when it once again warned that it might have to file for bankruptcy if it could not secure the funds.
(With inputs from agencies)
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