Bed Bath & Beyond filed for Chapter 11 bankruptcy April 23 and announced that it will begin to “implement an orderly wind down” of operations in all 360 stores after a year of declining sales and closures.
Sue Gove, president and CEO of Bed Bath & Beyond Inc., expressed her gratitude for the company’s devoted customers in a statement Sunday.
“We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders,” she said.
While shoppers may have to say goodbye to the chain, which was founded in 1971, shoppers will soon be able to to take advantage of the closing sales.
But if you'd been holding on to the store's coupons, now is the time to use them. They expire today. However, the store's closing sale starts tomorrow on April 26 until May 24.
Here’s what you need to know.
Coupons expire on April 26 but can be used at The Container Store
Gift cards can be used through May 8, but any shoppers hoping to use coupons will be disappointed. The company said employees will stop accepting coupons on April 26.
But, customers should not throw them away. The Container Store announced on April 26 that it will take coupons from Bed Bath & Beyond for a limited time.
"The Container Store will offer a 20% discount off any single item through May 31, 2023, for customers who bring a competitor’s blue coupon to any store location," the company said.
Membership benefits will end the day closing sales begin, but refunds are not available for membership holders.
Bed Bath & Beyond encouraged customers to contact Kroll Restructuring Administration, a restructuring service, for more information.
Closing sales begin tomorrow
Bed Bath & Beyond revealed on its website that closing sales will begin on April 26 with "deep discounts." Customers can still shop online, in stores or using the Bed Bath & Beyond/buybuy BABY app.
All purchases after April 26 will be final. The company said they "expect" to accept returns and exchanges for items bought before April 26 up until May 24.
The Welcome Rewards program will be up and running until May 15, meaning customers will be able to redeem points and merchandise credits. However, customers will not be awarded Welcome Rewards on any future purchases following the bankruptcy announcement.
Stores will remain open for now
The home goods retailer announced it had “filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey” in a statement April 23.
However, the company assured Bed Bath & Beyond and buybuy BABY customers that they will still be able to purchase items. The stores will remain open as Bed Bath & Beyond “begins its efforts to effectuate the closure of its retail locations,” the company said in the statement.
“Through the filing of customary motions with the Court, the Company intends to uphold its commitments to customers, employees, and partners, including continued payment of employee wages and benefits, maintaining customer programs, and honoring obligations to critical vendors,” the statement read.
Bed Bath & Beyond said it has received $240 million from the investment firm Sixth Street Specialty Lending to help fund the bankruptcy process as it tries to sell some of its assets.
How the company got here
The bankruptcy news comes after the company began 2023 with a series of store closures and layoffs.
In January, CNBC reported that employees were sent a memo that said the company’s chief transformation officer role had been eliminated. Additionally, the message said workforce would be reduced “across our corporate, supply chain and store portfolio,” but did not include the specific number of layoffs.
CNBC had previously reported in June 2022 that Bed Bath & Beyond’s shares had plummeted, and CEO Mark Tritton departed along with other top executives. Gove stepped in as interim CEO before taking over the role.
But the financial problems continued. The company’s shares were worth about $2 in January, according to NBC News.
In February, Bed Bath & Beyond announced 150 store closures across the country, just one week after initially revealing that 87 locations, five buybuy Baby stores and and all remaining Harmon Face Value stores were shuttering.
At the time, Gove said the 150 closures, totaling about half of all Bed Bath & Beyond locations, were intended to prioritize a “straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth and delivering business returns.”