The company had said the default is forcing the company to look at various alternatives including restructuring its debt in bankruptcy court.īed Bath & Beyond joins a growing list of retailers that have filed for bankruptcy so far this year including party supplies chain Party City and David's Bridal. In late January, it noted in a government filing it was in default of its loans and didn't have the funds to repay what it owes. The home goods retailer had been issuing several warnings about a potential bankruptcy filing since early this year. The company also said in a Securities and Exchange Commission filing in late March that it planned to sell $300 million worth of shares to avoid bankruptcy filing. In late March, it noted that preliminary results showed anywhere from a 40% to 50% decline in sales at stores opened at least a year for the quarter ended Feb. Its financial performance has also deteriorated. The bankruptcy filing comes as the company's shares have tumbled even more as speculation of an impending bankruptcy filing increased. This past holiday season, the stores were missing many key items, and it lost many customers, a problem that continued to plague the retailer through the winter and spring seasons. But the company has had a hard time having suppliers commit to delivering merchandise because of the retailer's financial woes. In recent months, the company, under the stewardship of recently appointed president and CEO Sue Grove, went back to its original strategy of focusing on national brands, instead of pushing its own store labels. The retailer ousted Tritton in June 2022 after two back-to-back quarters of disastrous sales. And while many retailers were grappling with supply chain issues a year ago, Bed Bath was among the most vulnerable, missing many of its 200 best-selling items including kitchen appliances and personal electronics, during the holiday 2021 season. It was never able to use the health crisis to pivot to a successful online strategy as others had, analysts said. Tritton quickly reduced coupons and started to introduce store label brands at the expense of national labels, a strategy that proved disastrous for the retailer.Īnd the pandemic, which happened shortly after his arrival, forced the retailer to temporarily close its stores. In late 2019, Bed Bath & Beyond tapped Target executive Mark Tritton to take the helm and turn around sales. Meanwhile, online players like Wayfair have lured customers with affordable and trendy furniture and home décor. That said, I wouldn’t expect old gift cards to continue to be honored beyond the deadlines above - so I recommend using them before you lose them.But for the last decade or so, Bed Bath & Beyond struggled with weak sales, largely because of its messy assortments and lagging online strategy that made it hard to compete with the likes of Target and Walmart, both of which have spruced up their home departments with higher quality sheets and beddings. While I can’t imagine they’ll find a buyer for the core business, I’d be a little surprised if nobody comes for the Buy Buy Baby business. I noted above that Buy Buy Baby stores are also slated to close, but keep in mind that Bed Bath & Beyond stated that they will be trying to find a buyer for all or part of the company and will pivot away from store closings if they find one. Even though Bed Bath & Beyond prices were often inflated, there were occasionally good deals to be had as well as the convenience of physical locations when one needed something right away. Furthermore, as a deal hunter, I prefer more competition over less. The stores in my vicinity had already closed, but Bed Bath & Beyond was occasionally useful for Visa Gift Card purchases years ago. I wouldn’t expect these stores to remain on shopping portals for long for those shopping online. Store closing sales will start on 4/26/23.Īgain, my understanding is that this will affect both Bed Bath & Beyond and Buy Buy Baby stores.I take this to mean that all purchases moving forward will be final sale. You can return or exchange purchases made before 4/23/23 until 5/24/23.Welcome Rewards can be used until 5/15/23, but you won’t earn any more rewards going forward.Merchandise credits can be used until 5/15/23.Gift cards will be accepted through 5/8/23.Bed Bath & Beyond coupons will be accepted through 4/26/23 (use those 20% off coupons or lose them).This news has been pretty widely reported, but I thought it was worth a quick post to alert any readers who have been sitting on Bed Bath & Beyond gift cards or merchandise credits that it is time to use them now.ĭoctor of Credit reports the following timeline: In case you missed yesterday’s news, Bed Bath & Beyond intends to close all of its stores (including Buy Buy Baby), with store closing sales beginning this Wednesday, April 26, 2023.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |