Bed Bath & Beyond Inc., a struggling home goods company (NASDAQ: BBBY), filed for Chapter 11 bankruptcy on Sunday. It said it would eventually close all 360 stores and 120 buybuy Baby locations.
Union, New Jersey based company says that all locations and websites are currently open to customers. However, it expects to close all its stores by 30 June.
In recent months, the retailer has sought funding from outside sources and closed hundreds of its stores. Currently there are nine Bed Bath & Beyond stores and one buybuy baby store in Alabama. The buybuy Baby store and two Bed Bath & Beyond stores are located in the metro area. It is likely that these stores will close, which would be a major blow to the landlords who own big-box retail space in the area.
Bed Bath & Beyond's bankruptcy filing estimated that Bed Bath & Beyond's assets and liabilities ranged between $1 billion and 10 billion dollars.
The retailer has announced that it has begun a liquidation process, but has also stated that it aims to use Chapter 11 proceedings 'to conduct a limited sales and marketing process' for some or all its assets. It has also filed motions in order to sell Bed Bath & Beyond as well as buybuy Baby through an auction.
In the event that a sale is successful, the company will not close any stores to complete the transaction. In a press release, the company stated that it believes that this dual-path approach will maximize value.
Sixth Street Partners, Bed Bath & Beyond's largest lender, has provided $240 million to the company in order to continue the business through the liquidation.