A MAJOR homeware retailer has revealed that dozens of its stores will close as it goes out of business.
Bed Bath and Beyond chiefs have admitted that they cannot make their Canadian operation profitable and have filed for bankruptcy.
Around 54 Bed Bath and Beyond stores will close and the embattled retailer will also shut its 11 Buy Buy Baby outlets.
Chiefs have admitted that there’s not enough capital to implement changes to its American operation, while also making its Canadian business profitable, according to a court filing seen by the Wall Street Journal.
And, the Canadian operation has reported net losses for nine months ending November 26, the court papers revealed.
Hundreds of workers are set to be affected as the company has 387 full-time staffers and 1,038 part-time employees.
The WSJ reported that Bed Bath and Beyond’s head honchos held talks with potential buyers, but a deal wasn’t reached.
It means stores in major cities such as Toronto, Winnipeg, Calgary, and Ottawa will close their doors.
The homeware retailer’s parent company has been facing a debt crisis for months.
Last week, chiefs announced that it would close another 150 of its stores but said they were planning to raise $1billion in a desperate bid to avoid bankruptcy.
Bed Bath & Beyond announced it had received initial gross proceeds of approximately $225million in the offering and expects to receive an additional $800million in future installments.
There were more than 900 Bed Bath and Beyond stores across the US in February 2022, but that number is set to be less than 400 amid the slew of closures.
The closures were announced as part of the company’s plans to reorganize as it tries to cut its net losses.
Following the mass closures, Iowa will only have one Bed Bath and Beyond store in the entire state.
Stores in Cedar Rapids, Coralville, Davenport, and Sioux City are among outlets that will be shutting, per the Des Moines Register.
A spokesperson for Bed Bath & Beyond told the publication the Coralville location is closing on March 1.
They said: “Store closing sales will commence and continue over the next few weeks and months.”
It’s not yet known when the other Bed Bath and Beyond outlets in the state will cease trading.
Last month, execs announced that it would shut down 87 of its stores and its entire chain of Harmon outlets.
The retailer revealed last summer that it would close 150 of its underperforming outlets.
Axios reported that many sites are set to close in March and 30 states will lose at least one Bed Bath and Beyond store.
Eight stores in California will close, six will shut in Florida, and five outlets will be closed in Michigan.
A store in Elmsford, New York has reportedly advertised a closing-down sale.
An email sent to its customers read: “A store near you is closing.
“Save at least 20% off [the] lowest ticketed prices. Visit the closing store near you for more discount details. Huge savings storewide.”
Bed Bath and Beyond racked up debts of up to $1.2billion and the company defaulted on its credit line with JP Morgan Chase and Co.
Net sales for the retailer were also down. The company reported $1.26billion in revenue at the end of the third quarter, ending on November 26.
The figure was way down on the $1.88billion in sales reported in 2021.
Brian Sozzi, an anchor for Yahoo Finance Live, said: “Bed Bath and Beyond is known in retail as a zombie retailer. It’s there. The stores are there.
“You can still probably go in there for now and get a towel, get a toothbrush if you need it, or some cups for your house.
“But by and large, the inventory is unlikely to be current.
“And chances are if you go back in a couple of days after your most recent visit, the shelves will probably be bare.”
Bed Bath and Beyond closures in Canada
CHIEFS at Bed Bath and Beyond have revealed that dozens of its Canadian stores will close amid its financial troubles. The U.S. Sun has revealed where shoppers will be affected.
- Stoney Creek
- Richmond Hill
- North Vancouver
- East Gwillimbury
- Greater Sudbury
- Sherwood Park
- Grande Prairie
- Rocky View
- Red Deer