Bed, Bath & Beyond files for bankruptcy despite $240 million financing

Bed Bath & Beyond has filed for Chapter 11 bankruptcy protection in the US, after the home goods retailer failed to secure funds to stay afloat, and has begun a liquidation sale.

The company plans to wind down its business and close all 475 remaining stores, including its Buy Buy Baby brand, by the end of June.

It also stated that it is seeking buyers for some or all of its assets.

Bed Bath & Beyond has been facing financial troubles for years and recently announced job cuts and store closures. The company had previously stated that it would sell $300 million worth of its shares and warned that it might have to file for bankruptcy if the funds were not secured.

The once-popular destination for household goods has struggled to keep up with the rise of online shopping.

In a filing to the United States Bankruptcy Court for the District of New Jersey on Sunday, the retailer stated that "the past twelve months have undoubtedly been the most difficult and turbulent in Bed Bath & Beyond's storied history." It added that despite "painstaking, creative, and exhaustive efforts to right the ship along the way, Bed Bath & Beyond is simply unable to service its funded debt obligations while simultaneously supplying sufficient inventory to its store locations."

Bed Bath & Beyond was founded in 1971 as Bed 'n Bath, and it had hugely expanded the goods it had on offer to include everything from bed linen to electric appliances. At its peak in the 2010s, Bed Bath & Beyond was the largest home furnishing retailer in the US, with more than 970 stores across all 50 states. However, in recent years it has struggled with dwindling profits as more customers chose to shop online.

Bed Bath & Beyond's President and Chief Executive, Sue Gove, said in a statement that "millions of customers have trusted us through the most important milestones in their lives - from going to college to getting married, settling into a new home to having a baby."

The company also stated that it had secured $240 million in financing from the Texas-based Sixth Street Specialty Lending to support its winding down process. Notices on the Bed Bath & Beyond and Buy Buy Baby websites said the stores "remain open to serve you," without offering a timeline for when services will cease.