End of an Era: Bed Bath & Beyond Goes Out of Business
The iconic home goods retailer, Bed Bath & Beyond, has filed for bankruptcy and announced that it would be liquidating its inventory. The company, a staple in homes across the United States since the 1990s, has struggled to keep up with online competitors like Amazon for years.
While the company has secured a $240 million loan to help fund its operations during bankruptcy, all 360 Bed Bath & Beyond locations and 120 buy buy BABY stores will begin store closing sales on Wednesday. The fate of its 14,000 employees remains uncertain.
Although a bankruptcy filing does not necessarily mean that a company is going out of business, Bed Bath & Beyond has stated that it will seek to sell some or all of its business. If a buyer does not come forward, the company will likely be liquidated entirely and go out of business.
Neil Saunders, an analyst at GlobalData Retail, suggests that even if the company does emerge from bankruptcy, it will be a “shadow of its former self.” Bed Bath & Beyond could return as an online-only retailer, but its future remains uncertain.
The company’s bankruptcy marks the end of an era for “category killer” chains that dominated a specific retail category, such as Toys “R” Us, Circuit City, and Sports Authority. As shoppers turn to online options for convenience and affordability, traditional brick-and-mortar stores need help to stay afloat.