Bed Bath & Beyond Inc. filed for bankruptcy on Sunday after failing to secure enough funds to stay afloat.
The home goods retailer filed for Chapter 11 protection in a District of New Jersey court, noting that it is expecting to close all of its retail locations by June 30.
“Thank you to all of our loyal customers,” Bed Bath & Beyond said in a statement. “We have made the difficult decision to begin winding down our operations.”
The struggling big box chain added that its 360 Bed Bath & Beyond and 120 Buy Buy BABY stores and websites will remain open and continue serving customers.
According to the court filing, Bed Bath & Beyond listed both its estimated assets and liabilities as being between $1 billion and $10 billion. It also said that Sixth Street Specialty Lending Inc. had agreed to provide debtor-in-possession finance for about $240 million.
The filing is meant “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,” company officials said.
This comes after Bed Bath & Beyond announced it was closing 87 more stores in January after shuttering 150 last year in a failed bid to avoid bankruptcy.
“There are certain conditions to our receipt of the proceeds at each closing, including that our common stock shall remain listed on a national securities exchange, that we have sufficient authorized common stock to issue the shares subject to such closing,” the January filing stated. “Our existing holders of common stock will be significantly diluted by the issuance of the securities in this offering.”
In February, the bewildered retailer had intended to raise close to $1 billion through the sale of preferred shares and warrants in order to stay out of bankruptcy.
The business was able to raise $360 million, which it used to cover senior note interest and loan defaults, but Bed Bath & Beyond canceled the agreement in late March, announced intentions to sell $300 million worth of its shares, and issued a new warning that it could have to declare bankruptcy if it was unable to raise the money.
