Bed Bath & Beyond (BBBY) continues its slow decline into bankruptcy with the announcement of another round of 87 store closures as the struggling retailer attempts to stay afloat.
The Feb. 1 announcement of 87 planned store closures follows a list of 150 Bed Bath and Beyond closures that was announced last August.
The new list will include 5 buybuy Baby locations, all 49 remaining Harmon health and beauty stores, plus several of its flagship-brand stores across the country.The home goods retailer admitted in January that net sales had fallen 33 percent, to $1.3 billion, for its latest quarter ending Nov. 26, compared with the same period a year ago, and that it was running out of options to avoid bankruptcy.
The company’s net loss grew to $393 million during the quarter, a 42 percent increase from a year ago.
“Although we moved quickly and effectively to change the assortment and other merchandising and marketing strategies, inventory was constrained and we did not achieve our goals,” Gove said in a statement on Jan. 10.
The company said sales plunged in large part because it did not have enough inventory on shelves from suppliers. It said it is attempting to revamp its merchandise selection and replace some of its private brands with name brands.
“As we continue to work with our advisers to consider multiple paths, we are implementing actions to manage our business as efficiently as possible,” a Bed Bath and Beyond spokesperson told CNN.
“This store fleet reduction expands the company’s ongoing closure program.”
The Rise And Fall of a Home Goods Giant
Founded in 1971, the retailer became one the nation’s largest sellers of affordable home goods and décor. However, BBBY has declined rapidly in recent years, after hitting a peak of 1,552 stores in 2017.
After 2018, it started to lose ground to rival chains like Walmart and Target after it failed to make the transition to online shopping.
The retailer made its first cuts that year, but the arrival of the pandemic in 2020 hit the company hard. Sales plummeted after its decision to close its stores temporarily, while rivals remained open.The company lost 17 percent of its sales in 2020 and another 14 percent in 2021.
BBBY then decided to close around 200 of its name-brand stores in 2020 and dispose of some of its weaker brands, such as its Christmas Tree Shops.
Meanwhile, the retailer angered conservative customers in 2021 by canceling the “My Pillow” product line, produced by conservative businessman Mike Lindell, after he criticized the outcome of the 2020 election.
BBBY’s total store square footage fell by 36 percent in the four fiscal years ending February 2022.
Bed Bath & Beyond finally defaulted “on or around” Jan. 13, according to the Securities and Exchange Commission.
The default means it is very close to filing for Chapter 11 bankruptcy reorganization to escape its creditor crisis.
Om Jan. 26, the company warned in a regulatory filing that it received a notice of default from its lender, JPMorgan Chase. Its shares plunged more than 20 percent on the news, to about $2.56 the following day.
The retailer announced that “at this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.”
The liquidation of inventory and space could allow a nearly insolvent company like BBBY to raise the cash it needs to help fund its operations through the reorganization process.
However, while store closures reduce operational costs, they also dent sales. Historically, few companies in this position have turned around their long-term financial problems through closings alone.
Bed Bath & Beyond provided a list of locations that it plans to close in the coming weeks:
- 6850 US Highway 90 Anchor D in Daphne, Alabama
- 4122 McCain Blvd. in North Little Rock, Arkansas
- 1834 South Signal Butte Road in Mesa, Arizona
- 1905 Calle Barcelona Suite 100 in Carlsbad, California
- 10822 Jefferson Blvd. in Culver City, California
- 2385 Iron Point Road. in Folsom, California
- 1405 East Gladstone Street in Glendora, California
- 14351 Hindry Avenue in Hawthorne, California
- 72459 Highway 111 in Palm Desert, California
- 10537 4S Commons Drive, Suite 170 in San Diego, California
- 165 S. Las Posas Road in San Marcos, California
- 1865 North Campus Avenue, Building #15 in Upland, California
- 3125 South Mooney Blvd. in Visalia, California
- 1605 Fall River Drive in Loveland, Colorado
- 16531 Washington Street in Thornton, Colorado
- 20 Hazard Avenue in Enfield, Connecticut
- 2260 Kings Highway in Fairfield, Connecticut
- 835 Queen Street in Southington, Connecticut
- 1065 Silas Deane Highway in Weathersfield, Connecticut
- 2239 East Semoran Blvd in Apopka, Florida
- 20560 State Road 7 in Boca Raton, Florida
- 371 North Congress Ave. in Boynton Beach, Florida
- 320 Brandon Town Center Dr. in Brandon, Florida
- 4631 North University Dr. in Coral Springs, Florida
- 14824 South Military Trail in Delray Beach, Florida
- 1460 West 49th St. in Hialeah, Florida
- 6001 24 Argyle Forest Blvd in Jacksonville, Florida
- 3221 City Station Drive, Suite 125 in Jacksonville, Florida
- 397 North Alafaya Trail in Orlando, Florida
- 540 North State Road 7 in Royal Palm Beach, Florida
- 1 Buckhead Loop in Atlanta, Georgia
- 3615 South Federal Way in Boise, Idaho
- 9650 South Ridgeland Avenue in Chicago Ridge, Illinois
- 5786 Northwest Highway in Crystal Lake, Illinois
- 215 Harlem Avenue in Forest Park, Illinois
- 1584 South Randall Rd. in Geneva, Illinois
- 3232 Lake Ave., Suite 125 in Wilmette, Illinois
- 2515 Corridor Way Suite 5 in Coralville, Iowa
- 15335 West 119th Street in Olathe, Kansas
- 4350 Summit Plaza Drive in Louisville, Kentucky
- 200 Harker Place Suite 200 in Annapolis, Maryland
- 12641 Ocean Gateway Suite 240 in Ocean City, Maryland
- 200 Clifton Blvd in Westminster, Maryland
- 3 Abbott Park in Burlington, Massachusetts
- 820 Providence Highway in Dedham, Massachusetts
- 458 State Road, Rt 6, Suite 100 in North Dartmouth, Massachusetts
- 665 Merrill Road in Pittsfield, Massachusetts
- 600 South Street West, Suite 13 in Raynham, Massachusetts
- 7961 Southtown Center in Bloomington, Minnesota
- 10770 Sunset Hills Plaza in St. Louis, Missouri
- 155 Promenade Blvd. in Bridgewater, New Jersey
- 276 Route 202/31 in Flemington, New Jersey
- 1160 Route 23 North in Kinnelon, New Jersey
- 1121 Highway 34, Suite A in Matawan, New Jersey
- 190 Hamilton Commons in Mays Landing, New Jersey
- 8 Centerton Road in Mt. Laurel, New Jersey
- 5131 Sunrise Highway in Bohemia, New York
- 850 Third Avenue in Brooklyn, New York
- 459 Gateway Drive in Brooklyn, New York
- 72 15 25th Avenue in East Elmhurst, New York
- 251 East Main Street in Elmsford, New York
- 1490 Union Turnpike in New Hyde Park, New York
- 2020 South Road, Suite 3 in Poughkeepsie, New York
- 3064 Route 50 in Saratoga Springs, New York
- 1455 East Lasalle Drive in Bismarck, North Dakota
- 3750 Easton Market in Columbus, Ohio
- 1700 Oxford Drive in Bethel Park, Pennsylvania
- 3739 William Penn Highway in Monroeville, Pennsylvania
- 1261 Knapp Road in North Wales, Pennsylvania
- 160 Quinn Drive in Pittsburgh, Pennsylvania
- 205 West Blackstock Road in Spartanburg, South Carolina
- 5523 Highway 153, Suite 112 in Hixson, Tennessee
- 870 South White Station Road in Memphis, Tennessee
- 420 East FM 3040 Suite 300 in Lewisville, Texas
- 6400 West Plano Parkway, Suite 125 in Plano, Texas
- 2112 SW HK Dodgen Loop in Temple, Texas
- 1678 West Redstone Center Drive in Park City, Utah
- 1324 Greenbrier Parkway in Chesapeake, Virginia
- 24670 Dulles Landing Dr Unit 150 in Dulles, Virginia
- 12100 Fairfax Towne Center in Fairfax, Virginia
- 6642 Loisdale Rd. in Springfield, Virginia
- 4900 Monticello Ave, Suite 4 in Williamsburg, Virginia
- 2540 South Pleasant Valley Road in Winchester, Virginia
- 7809B Vancouver Plaza Dr #102 in Vancouver, Washington
- 1630 West Poplar Street in Walla Walla, Washington
- 395 Target Way in Morgantown, West Virginia
- 3575 Rib Mountain Drive in Wausau, Wisconsin
