What is the impact of Bed Bath & Beyond filing for bankruptcy?

What is the impact of Bed Bath & Beyond filing for bankruptcy?
Published: Apr. 24, 2023 at 4:11 PM EDT
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LEXINGTON, Ky. (WKYT) - Say bye-bye to Buybuy BABY stores and Bed Bath & Beyond locations across the country.

The company has filed for bankruptcy protection, according to an announcement Sunday.

For more than 50 years, Bed Bath & Beyond has been selling popular bedding, appliances and household cleaning supplies.

After years of declining sales, losses and several failed turnaround plans, they have announced plans to shutter all their brick-and-mortar locations.

Was the writing on the wall?

“You know there were some signals they were struggling, and they have had some pretty stiff competition from online vendors, so I don’t think it was a huge surprise,” said Professor Mike Clark with the Center for Business and Economic Research.

The store closings put thousands of jobs at risk. Court records show the company employed 14,000 workers, down drastically from 32,000 employees in February last year.

“A lot of people are now working two and, in some instances, three jobs because inflation is so high. With that, I think more people are moving to online shopping than ever before just because they lack the time,” said Eastern Kentucky University College of Business Assistant Professor Dr. James Kirby Easterling.

Competition in the market has been fierce. Other big-box retailers like Target, Walmart and online wholesaler Wayfair have been luring customers away.

“They don’t necessarily want to go out to brick and mortar type stores but rather just the convenience, the necessity of working so many hours and having so little free time,” said Easterling.

You can expect deep discounts as the company begins rolling out end-of-business sales. Those famous 20% off coupons are only good through Wednesday.

The company is continuing to search for a buyer for all or some of its businesses.

All 475 locations are expected to shutter their doors by June 30.