"Thank you to all of our loyal costumers, we have made the difficult decision to begin winding down our operations." With that message on its website, Bed Bath & Beyond Inc. announced it will begin to liquidate its business.
For the time being, the 360 Bed Bath & Beyond branches and 120 buybuy BABY branches will remain open. The same will be true for its website. The company's plan is to close gradually, in an orderly manner, while trying to sell off its assets.
To keep its doors open, the company explained it will receive close to $240 million from Sixth Street Specialty Lending. However, it will only be able to receive this amount when the District Court of New Jersey approves the company's petition for bankruptcy relief made on Sunday.
On April 23, 2023, Bed Bath & Beyond Inc. and 73 affiliated debtors (collectively, the "Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey. The cases are pending before the Honorable Vincent F. Papalia and have requested joint administration of the cases under Case No. 23-13359.
The company warned in January that its poor earnings results could force it to file for bankruptcy. Its net sales in the last quarter of 2022 were 36% less than 2021, the Associated Press reported earlier this year.
Its sales have been falling since 2018, according to reports from Global Data. Something similar can be said for its workforce. Earlier this year, Sue Gove, the company's CEO, warned in a memo that another round of layoffs would begin. Grove was chosen in 2022 precisely because of her expertise in advisory and restructuring.
As soon as the company announced the decision to file for bankruptcy, users on social media argued that it was in this situation due to its woke policies. They recalled that the company stopped selling products from Mike Lindell, owner of My Pillow, claiming that they sold poorly. Lindell argued, instead, that the company was canceling him for his comments on voter fraud.
Bed, Bath & Beyond is heading to the great beyond.
Woke Bed, Bath & Beyond canceled
Mike Lindell's MyPillow, so Conservatives boycotted them.
🌈"Bed, Bath & Beyond" now
Our Money Is Our Voice. Go woke go broke. pic.twitter.com/JqkHyqcrW6
— 🇺🇸 Pat's World 🇺🇸 (@itspatsworld) April 23, 2023
BREAKING REPORT: Bed Bath & Beyond files for Chapter 11 bankruptcy and announces ALL 360 STORES nationwide will eventually close..
REMEMBER WHEN THEY CANCELED MIKE LINDELL?
Funny how things "CIRCLE BACK"..
— Chuck Callesto (@ChuckCallesto) April 23, 2023