Recently, Bed Bath & Beyond announced that it will close 87 stores in the United States in the medium term, following a trend of location closures in this company that is having severe problems surviving. Additionally, the owner conglomerate announced that it will terminate at least five buybuy BABY stores, and all Harmon stores, which sells beauty products.
According to Bed Bath & Beyond, the closures are aimed at improving efficiency while the company works with advisors to consider “multiple paths” to adapt to changing times and new economic realities. “This store fleet reduction expands the Company’s ongoing closure program of approximately 150 lower-producing Bed Bath & Beyond banner stores,” a spokesperson manifested. “We will update all stakeholders on our plans as they develop and finalize.”
The Company Bed Bath & Beyond Trying to Survive the Crisis
In mid-January, the company publicly admitted to the Securities and Exchange Commission that it had defaulted on its loans, which could force it to pursue a debt restructuring in bankruptcy court. In front of this commission, representatives of the household products’ retailer explained the actions they are taking to improve their financial situation, reduce costs, cut capital expenses and more.
Bed Bath & Beyond has not yet been announced which stores in the United States will be the ones that will close their doors, leaving thousands of employees out of work.
But, they announced that these measures, anyway, may not be successful, and the company could, eventually, go bankrupt. Bed Bath & Beyond welcomed the new year 2023 with an announcement of a potential bankruptcy, bad news that came accompanied by a report of a 33% reduction in its sales in the previous quarter.
Bed Bath & Beyond and the keys to store closures
Another key point to consider is that struggling retail companies file for bankruptcy protection after the holiday shopping season, as they are left with enough cash coming from the shopping frenzies during the months of November and December. Things are not looking rosy for Bed Bath & Beyond, in the midst of a potentially shrinking U.S. economy and strong competition from online retailers.
Bed Bath & Beyond is a large retailer specializing in home goods and household items. They offer a wide variety of products including bedding, bath towels, kitchen appliances, furniture, home decor, and storage solutions. The company operates 623 stores in the United States, but that number will contract in the near future, as well as the number of employees it has not only in the US but also in Canada, where it is present. The store with the most stores is California, with a 10% of the total, 67 locations in total.