Threatened with Bankruptcy, Legendary US Retailer Closes Hundreds of Stores and Lays Off Employees

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Retail Bed Bath and Beyond in the United States have had a series of store closures in recent times. Most recently, the legendary retailer closed 87 of its stores in order to survive bankruptcy.

The store closure is an additional step from the 150 closures Bed Bath and Beyond previously announced last August. The closure of this store also caused many employees to lose their jobs.

“We are implementing measures to manage our business as efficiently as possible,” said a Bed Bath and Beyond spokesperson.

A spokesperson for the company also confirmed late Wednesday that the company had missed paying its bonds on February 1, and entered a month-long grace period. Debtors will have a grace period of 30 days to make payments before they are declared default.

“We are committed to updating all stakeholders on our plans as they develop and finalize them,” the spokesperson said.

The spokesperson did not confirm the amount Bed Bath and Beyond owed. However, the Wall Street Journal previously reported Bed Bath and Beyond defaulted on more than $28 million for three tranches of notes totaling about $1.2 billion that were due on February 1.

This legendary retail chain founded in 1971, Bed Bath & Beyond became a staple for affordable home d├ęcor, kitchenware, and college dorm room furniture.

Shop Bed Bath & Beyond rose to fame with the ubiquitous 20% off coupons, and mega-stores with merchandise piled high to the ceiling. Bed Bath is growing its company footprint aggressively, peaking at 1,552 stores in 2017.

As of February last year, the company had 953 stores remaining, and has announced plans to close more than 200 additional stores since then.

The closure not only reduced headcount and payroll costs, but also the rent that had to be paid. The company’s total store ownership per square meter fell by 36% in the four fiscal years ending February 2022.

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(p/das)

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