American chain Bed Bath & Beyond has filed for bankruptcy. The furniture retailer failed to secure the funds to stay afloat and began a liquidation sale, Reuters reported.
Bed Bath & Beyond gained popularity and a cult following in the 1990s and early 2000s. As the CNN portal pointed out, it seemed that you could buy practically everything you needed for your home on the American network. It was a shopping destination especially popular with young couples registering gifts before their wedding or planning to have a baby, Reuters reported.
She explained that in recent years the chain has seen a decline in demand, and the strategy of selling more branded products has turned out to be a flop.
Bed Bath & Beyond declares bankruptcy
The agency added that last year’s efforts – abandoning a misguided strategy and introducing more domestic brands recognizable by buyers – did not yield results. The company reported a loss of approximately $393 million after sales fell 33 percent in the quarter ending Nov. 26.
The Union, a New Jersey-based retailer, filed for bankruptcy in New Jersey County Court. He said his estimated assets and liabilities ranged from $1 billion to $10 billion, according to court records.
Although Bed Bath & Beyond has started a liquidation sale, it intends to use the so-called Chapter 11 proceedings to conduct limited sales and marketing for some or all of its assets, Reuters reported in a statement.
The company added that its 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain operational and continue to serve customers as retail closures begin.
The Reuters agency recalled that in January the company expressed serious doubts about its ability to continue as a going concern. This was just months after it announced it had received more than $500 million in new funding, as well as cutting jobs and closing 150 stores.
In February, the retailer planned to raise about $1 billion through a stock offering to avoid bankruptcy. The company was only able to raise $360 million, which helped pay off outstanding loans and interest on senior bonds.
However, Bed Bath & Beyond terminated the deal in late March and announced plans to sell its stock worth $300 million. The chain has warned that it may have to file for bankruptcy if it is unable to secure funds.
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