Home goods retailer Bed Bath & Beyond Inc. is preparing to liquidate its stores after filing for Chapter 11 bankruptcy while also attempting to sell assets that might keep some open.
There are three Bed Bath & Beyond stores in Northeast Florida in Jacksonville, Jacksonville Beach and St. Augustine. The company also operates a buybuy Baby in Jacksonville.
The company has not announced when sales will start, although associates answering the phones at two area stores say the sales start Wednesday.
Bed Bath & Beyond announced April 23 that its 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as the company “begins its efforts to effectuate the closure of its retail locations.”
While the company has started a liquidation sale, Bed Bath & Beyond said it intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets.
The company said it has filed motions with the court seeking authority to market Bed Bath & Beyond and buybuy BABY as part of an auction while “strategically managing inventory to preserve value.”
“In the event of a successful sale, the company will pivot away from any store closings needed to implement a transaction. The company believes this dual-path process will best maximize value,” the release said.
The Union, New Jersey, company said April 23 it filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of New Jersey “to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
Bed Bath & Beyond stores already closed in River City Marketplace in North Jacksonville and at 6001-24 Argyle Forest Blvd. in West Jacksonville. Those were part of the company’s 87 stores nationwide it announced Jan. 30 it would close.
The company said in early January it was considering bankruptcy after worse-than-expected sales. The company said Jan. 10 it lost $393 million during the fiscal third quarter, worse than the $385.8 million quarterly loss it had projected, according to reports.
Bed Bath & Beyond said April 23 that it received a commitment of about $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc.
“Following court approval, the Company expects this financing to provide the necessary liquidity to support operations during the Chapter 11 process,” it said.
It said 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.”
“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,” said Sue Gove, Bed Bath & Beyond president and CEO.
The release said that in late 2022, the company “initiated a significant turnaround plan to reset foundational elements of its operational and financial positioning to better serve customers, employees, and supplier partners.”
It said it took action to improve merchandise assortment, streamline the supply chain and optimize its store footprint.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, Lazard Frères & Co. LLC is serving as investment banker, and AlixPartners LLP is serving as financial advisor.
Bed Bath & Beyond Inc. has retained Hilco Merchant Resources LLC to assist with inventory sales.