“We had witnessed the department store shakeout and knew that specialty stores were going to be the next wave of retailing,” Feinstein said in 1993.
The company changed its name to Bed Bath & Beyond in 1987 to reflect its expanded merchandise and bigger “superstores.” The company went public in 1992 with 38 stores and around $200 million in sales. Unlike department stores, it didn’t rely on sales events to draw in customers. The store will stop accepting gift cards on May 8.įounded in 1971 by Warren Eisenberg and Leonard Feinstein, two veterans of the discount retail industry in Springfield, New Jersey, the chain of small linen and bath stores - then called Bed ‘n Bath - first grew around the northeast and in California selling designer bedding, a new trend at the time. Items purchased before Wednesday can be returned until May 24, but all sales after Wednesday will be final. The company encouraged shoppers to seek out its discounted merchandise later this week. It secured $240 million in financing Sunday to stay afloat just long enough to close its stores and wind down its operations. In its bankruptcy filing, Bed Bath & Beyond said it had $5.2 billion in debt and assets of just $4.4 billion. Stores were a fixture for shoppers around the winter holidays and during the back-to-school and college seasons, and Bed Bath & Beyond also had a strong baby and wedding registry business.īut the New Jersey-based company has been slow to respond to shopping changes and struggled to entice customers who had moved on to Amazon, Target and other chains. Plus, the open-store layout encouraged impulse buying: Shoppers would come in to buy new dishes and walk out with pillows, towels and other items. Brands coveted a spot on Bed Bath & Beyond’s shelves, knowing it would lead to big sales. The retailer attracted a broad range of customers by selling name brands at cut-rate prices. Instead, Bed Bath & Beyond expects to offer “deep discounts” on its products as part of its going-out-of-business sales.
The company will stop accepting them Wednesday. The company said customers will have Sunday, Monday and Tuesday to use their remaining 20%-off coupons. The blue-and-white coupons became something of a pop culture symbol, and millions of Americans wound up stashing them away in their cars, closets and basements. Jessica Rinaldi/Reutersīed Bath & Beyond became known for pots and pans, towels and bedding stacked from the floor to the ceiling at its cavernous stores - and for its ubiquitous 20%-off coupons. Those companies, too, ultimately filed for bankruptcy as shoppers turned away from huge specialty stores in favor of online options like Amazon.Ĭhris Hammons unloads a bag of items she purchased at a Bed Bath & Beyond store in Dallas, Texas September 23, 2009. “Ultimately, if it emerges from bankruptcy at all, Bed Bath & Beyond will be a shadow of its former self,” he said.īed Bath & Beyond had been a crown jewel of the era of so-called “category killers” - chains that dominated a category of retail, such as Toys “R” Us, Circuit City and Sports Authority. It’s also possible the company could emerge from bankruptcy as an online-only retailer, said Neil Saunders, an analyst at GlobalData Retail.
But if a buyer doesn’t come forward, Bed Bath & Beyond will likely be liquidated entirely and go out of business.
If it’s able to find a buyer, Bed Bath & Beyond will halt store closings. The company said it would seek to sell some or all of its business. But even if Bed Bath and Beyond does emerge from bankruptcy, its future is not guaranteed. Many major US companies have filed for bankruptcy, using it to shed debt and other costs they could no longer afford. Just how many – or what happens to its 14,000 employees –depends on what happens next.Ī bankruptcy filing does not necessarily mean that a company is going out of business. The company secured a $240 million loan to help fund its operations during bankruptcy.īut store closing sales will begin Wednesday, and Bed Bath & Beyond will close some stores. The company’s 360 Bed Bath & Beyond locations, along with its 120 buybuy BABY stores, will remain open for now, as will websites. We have made the difficult decision to begin winding down our operations,” a statement at the top of the company’s website said Sunday morning. “Thank you to all of our loyal customers. Bed Bath & Beyond, the store for seemingly everything in your home during the 1990s and 2000s, filed for bankruptcy on Sunday.
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