It’s the end of an era as Bed Bath & Beyond — the retail giant which pared back its large-scale inventory of housewares and specialty items — ended the weekend by filing for bankruptcy on Sunday, April 23.
The company released a brief announcing nationwide reduction at the top of their official website Sunday morning, thanking their loyal customers from over the past five decades before announcing that they had “made the difficult decision to begin winding down our operations.”
According to The New York Times, the merchant filed for bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey ahead of its final downgrade set to begin on Wednesday, April 26.
The company raised $240 million to fund its operation through its current financial crisis with help from the investment firm Sixth Street Specialty Lending.
For consumers who love to frequent the 52-year-old retailer to frolic amongst its Narnia of kitchen gadgets, the lights will soon be shutting off at the remaining 360 store locations, along with its 120 Buy Buy BABY stores. The company is also looking to sell some or all of its business in hopes of halting the pending store closure. However, if a buyer fails to come forward, the retailer will reportedly go into liquidation and ultimately out of business entirely.
Bed Bath & Beyond faced many of the traditional retail hurdles, including a rare 2020 outside hiring of now former CEO Mark Tritton of Target, and — of course — the inevitable restructuring that led to mass layoffs. That same year, revenue fell to $2.6 billion, a 16 percent drop from the previous year. However, that wouldn’t be the last of its changes. The retailer soon scaled back on its trademark coupons which often saved shoppers 20% off an item and even sometimes their entire purchase.
The store also started carrying more private brands over well-known ones and as-seen-on-TV items like Republican pundit Mike Lindell’s popular My Pillow. It’s best to note that it isn’t proven the fallout played any role in the store’s bankruptcy despite online belief. The store stopped carrying the product after the devoted Donald Trump supporter voiced support for the January 6 insurrection and continued to publicly question the validity of the U.S. presidential elections.
Still, many relished the announcement of the store’s decline. Some critics even laughingly claimed that bankruptcy was seemingly financial karma for the store’s decision to cut ties with a man who proudly supported the attempted takeover of democracy and the spread of misinformation, with chants like “Go woke go broke” plastered on Twitter.
Others sang, “Rest in peace Bed Bath & Beyond…but not on a My Pillow.”
Alt-right cheerleaders have continuously peddled claims that being aware of racial prejudice and other discrimination against peers has become a costly move for major corporations. The same was said for Disney, whose animated film Strange World, which features an openly gay character, bombed in theaters amid the company’s fight against all things Ron DeSantis. The movie had little to no promotion ahead of its November 2022 release, but folks somehow blamed it on “wokeness.”
Yet, while the pandemic offered a temporary fix to a slow leak, as Bed Bath & Beyond joined others in helping Americans across the country to get supplies and household needs, the company failed to stay afloat against the surge of online shopping culture as its competitors’ e-commerce technology proved far more advanced.
According to Neil Saunders, an analyst at GlobalData Retail, a revival isn’t entirely off the table either. However, the financial expert believes that even if the company “emerges from bankruptcy at all, Bed Bath & Beyond will be a shadow of its former self.”
Bed Bath & Beyond will stop accepting its coupons on Wednesday. Items purchased before then can be returned until May 24, but all sales after that date will be final. Customers will have until May 8 to use Bed Bath & Beyond gift cards. All stores are expected to close by June 30, 2023.
Published: Apr 23, 2023 08:24 pm