Bed Bath & Beyond files for bankruptcy. Here's what it means for Wilmington shoppers.
After being in business for more than 50 years, Bed Bath & Beyond filed for bankruptcy on Sunday due to financial struggles.
The big box store, known for selling home merchandise, is planning to close hundreds of stores in the upcoming days. An email from Bed Bath & Beyond Inc. was sent to customers about the company filing for voluntary Chapter 11 protection in the U.S. District Court in New Jersey.
According to the email, the company's 360 stores and its websites will remain open and will continue to serve customers for now while operations start to wind down.
For the bankruptcy process, the company received a commitment of $240 million in debtor-in-possession financing from Sixth Street Specialty Lending, Inc. After court approval, the financing will help with the liquidation to support operations during the bankruptcy process.
In Wilmington, Bed Bath & Beyond is located at the University Centre shopping complex on 352 S. College Road alongside other major retailers such as Old Navy, Ross, Staples, Petco and Lowe's Home Improvement.
While there's no specific date for any store closure, the company's website stated store closing sales will start on Wednesday, April 26.
What happened?
Earlier this year, the company announced the closing of stores in various location to avoid bankruptcy. According to an USA TODAY report, several were in North Carolina. Some of the listed locations were Hickory, Raleigh, Greenville, and Burlington.
Looking back: Bed Bath & Beyond closes 150 more stores in effort to avoid bankruptcy: See the list
Wilmington was not listed at the time.
The closing comes in a time when more people are looking to find deals online from other competitors and other economic woes.
In January, a news release from the company reported a decline in revenue for the third quarter of the 2022 fiscal year, which ended in November. It was reported net sales of $1.25 billion, a drop of 33% compared to a year earlier.
What does it mean for customers?
∎ According to Bed Bath & Beyond, the company is expecting to process returns and exchanges until May 24 for items purchased before April 23.
∎ Gift cards and certificates will be accepted through May 8.
∎ Coupons and Welcome Rewards+ discounts will no longer be accepted starting April 26.
∎ Bed Bath & Beyond is expecting all in-stock orders placed online before and after bankruptcy to be fulfilled at this time.
STAY CONNECTED: Keep up with the area’s latest news by signing up for the StarNews newsletter and following us on Facebook and Instagram.
Reporter Chase Jordan can be reached at cjjordan@gannett.com.
This article originally appeared on Wilmington StarNews: Bed Bath & Beyond in Wilmington to close as company enters bankruptcy
