According to a court filing and a business statement, US retailer Bed Bath & Beyond has declared bankruptcy. The company filed for bankruptcy on Sunday after a long effort to stay solvent. According to a court filing, the home goods retailer filed voluntary petitions for Chapter 11 relief in the United States Bankruptcy Court for the District of New Jersey.
“Thank you to all of our loyal customers,” a banner on the company’s website read Sunday
The statement added that the action had been taken “to implement an orderly wind-down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.” “Thank you to all of our loyal customers,” a banner on the company’s website read Sunday. “We have made the difficult decision to begin winding down our operations.”
According to court documents, the Union, New Jersey-based home products firm assessed its assets and liabilities to be between $1 billion and $10 billion. Bed Bath & Beyond raised concerns in January that the company might not be able to continue. The revelation caused its stock to plummet since it was interpreted as an indication that the company might declare bankruptcy. At the time, the business predicted a $386 million loss in the previous quarter. Just a few months before this statement, it announced employment layoffs and the closure of 150 stores, as well as raising more than $500 million in new finance.
The business also stated that 360 Bed Bath & Beyond stores and 120 buy buy BABY stores will continue to serve the clients
CEO Sue Gove said the company “will continue working diligently to maximize value for the benefit of all stakeholders.” “We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process.”
The business also stated that 360 Bed Bath & Beyond stores and 120 buybuy BABY websites will continue to serve the clients as it begins attempts to close its physical locations. To avoid bankruptcy, the company expected to raise roughly $1 billion in February by offering preferred shares and warrants. It earned $360 million from the complex transaction, which helped it settle loan defaults and senior note interest obligations.
Bed Bath & Beyond, on the other hand, called the merger off in March and revealed intentions to sell $300 million in stock. This is when it warned that if the cash could not be secured, the company would have to declare bankruptcy.