Bed Bath & Beyond is set for a swift pullback from its physical locations after the home goods retailer filed for Chapter 11 bankruptcy.
The big box retailer will immediately begin liquidating its entire footprint, consisting of 360 Bed Bath & Beyond stores and 120 Buy Buy Baby stores, Bloomberg reported. Roughly 14,000 employees are employed by the company, which is still seeking a buyer for any amount of its assets.
The retailer had roughly 27.9 million square in its portfolio during 2022, according to a count by Statista, though that figure is surely higher than the square footage total now, considering plenty of closures predating the bankruptcy.
It promises to be a relatively swift death for the legacy retailer. Its signature coupons won’t be accepted after April 26 and sales at all brick-and-mortar stores are expected to be completed by June 30, by which all of the locations will be vacated.
As of late November, the company estimated it had $4.4 billion in assets and $5.2 billion in total debt. BNY Mellon has the largest unsecured claim among the creditors, approximately $1.2 billion.
The end appeared to be nearing earlier this year, when the chain began mulling bankruptcy. That came on the heels of a $400 million loss in the fourth quarter, as well as prominent inventory shortages in stores. In August, the company moved to cut 150 stores and enact large layoffs.
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Big-box retail growth spells options for Bed Bath & Beyond landlords
Bed Bath & Beyond landlords have been preparing for what felt like an inevitability. Earlier this year, one of its largest landlords landed commitments from tenants to fill all dozen of the stores it had in its portfolio upon closure. Stores are typically located in large suburban shopping centers, often ranging in size from 18,000 square feet to 70,000 square feet.
It’s been a tough few months for some of the country’s largest big-box retailers, with Bed Bath & Beyond joining Party City and David’s Bridal in filing for bankruptcy and pulling out of national real estate footprints.
— Holden Walter-Warner