Major Retailer That ‘Canceled’ Mypillow Guy Mike Lindell Files for Bankruptcy
A former retail fixture for millions of Americans will soon fade away now that Bed Bath & Beyond has filed for reorganization under Chapter 11 of the federal bankruptcy laws.
In its bankruptcy filing, the company said it had $4.4 billion in assets and $5.2 billion in debt, according to CNN.
The company announced in a release that it was able to secure enough financing to close its stores and wrap up operations. No end date for store operations was announced.
Consumers who have the company’s 20 percent off coupons can use them Sunday, Monday and Tuesday, according to CNN.
As of Wednesday, however, the iconic coupons will no longer be accepted. Instead, Bed Bath & Beyond will have a mammoth going-out-of-business sale and promises major discounts.
The company’s release said that as it sells off its inventory, it will also try to sell any remaining assets anyone wants to buy.
The company said that for now, all 360 Bed Bath & Beyond and 120 buybuy BABY stores and their company’s websites will be open for business.
Bed Bath & Beyond has been struggling since the pandemic, and had been flirting with bankruptcy throughout the year.
As noted by CNN, it had proposed massive store closings to focus on stories making money.
“We are going to see the Darwinism of retail,” Michael Lasser, a retail analyst at investment firm UBS who has covered Bed Bath & Beyond for 16 years, said according to The New York Times.
He said the coming year “will be characterized, in part, by seeing that play out after this period of what would have been a pause in the Darwinism.”
Neil Saunders, managing director at data analysis company GlobalData’s retail division, said the filing illustrates the difficulty of rebounding once a cash shortage triggers a loss of inventory and sales.
“It’s a death spiral,” he said.
“If you can’t get the stock, you can’t make the sales. If you can’t make the sales, your credit deteriorates. If your credit deteriorates, people are less willing to supply you. That cycle seems impossible to break,” Saunders explained.