Bed Bath & Beyond Inc filed for Chapter 11 bankruptcy protection on Sunday after the home goods retailer failed to find funds to stay afloat and entered a liquidation sale.
The home goods retailer, which rose to popularity in the 1990s as a destination for couples making wedding and baby gift lists, has seen demand drop in recent years because its marketing strategy own brands failed.
Steps taken last year to introduce more shopper-recognized brands have shown no sign of working, and Bed Bath & Beyond posted a loss of about $393 million after sales fell 33% in the quarter ended June 26. November.
Union-based retailer, New Jerseyfiled for bankruptcy in a New Jersey district court, reporting assets and liabilities estimated at $1 billion to $10 billion, according to a court filing.
According to a statement, the company has received a financing commitment during the bankruptcy of approximately $240 million from Sixth Street Specialty Lending Inc.
Bed Bath & Beyond initiated a liquidation sale and intends to use the Chapter 11 procedures of the Bankruptcy Law in the United States to carry out a limited divestment of some or all of its assets, according to the statement.
The company added that its 360 stores and websites Bed Bath & Beyond and 120 buybuy BABY They will remain open and continue to serve customers while efforts to close their stores begin.
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