In a tough decision, Bed Bath & Beyond, the one-stop-shop for all your home needs, has announced that it will be liquidating all inventory and closing down. The company filed for bankruptcy on Sunday, and while its 360 Bed Bath & Beyond and 120 buybuy BABY stores will remain open for now, the retailer has plans to begin winding down its operations.
As a part of the liquidation, store closing sales will begin on Wednesday, with some stores expected to close. Customers can still shop on the website, but the future of the company is uncertain. While many US companies have filed for bankruptcy to shed debt and other costs, Bed Bath & Beyond may emerge as an online-only retailer, or it may be liquidated entirely and go out of business.
Neil Saunders, an analyst at GlobalData Retail, stated that “if it emerges from bankruptcy at all, Bed Bath & Beyond will be a shadow of its former self.” The retailer was once a crown jewel of the era of “category killers,” but it has struggled to keep up with the shift to online shopping as shoppers turned away from huge specialty stores in favor of options like Amazon.
Despite being known for its pots and pans, towels, and bedding, as well as its ubiquitous 20%-off coupons, Bed Bath & Beyond has been slow to respond to changing shopping habits. The company has been burdened by a debt of $5.2 billion and assets of just $4.4 billion.
Customers who still have 20%-off coupons can use them until Tuesday, after which the store will stop accepting them. Instead, the company will offer deep discounts on its products as part of its going-out-of-business sales. The retailer has encouraged shoppers to seek out its discounted merchandise while stocks last, and items purchased before Wednesday can be returned until May 24.
The news of Bed Bath & Beyond’s bankruptcy and liquidation has shocked its loyal customers. The retailer had been a fixture for shoppers around the winter holidays and during back-to-school and college seasons. While the future of the company remains uncertain, it is clear that the era of the “category killer” may soon come to an end.
