Bed Bath & Beyond files for bankruptcy. What does this mean for DFW stores?
Bed Bath & Beyond filed for bankruptcy on Sunday, meaning the retailer known for bedding supplies, bathroom linens and home decor expects to close all of its locations.
Employees in Fort Worth and Arlington said the company has given them no information about the timing of store closings. Dallas-Fort Worth is home to more than 13 of Bed Bath & Beyond’s 360 locations,.
The company has reported earnings losses in recent years and closed more than 200 stores across the chain in February, indicating bankruptcy could be around the corner. The retailer filed for Chapter 11 bankruptcy, which allows for reorganization of the business and tends to focus on paying back the company’s debt instead of shareholders.
The retailer told the Fort Worth Star-Telegram its stores remain open but would not comment on a timeline for expected closings,
“We thank our loyal customers for bringing us into their lives and encourage them to visit us in-store and online to shop our closing sales,” the company said.
Bed Bath & Beyond is not the only once-popular retail chain that has faced bankruptcy and store closings in recent years. JCPenney, Toys R Us, Sears and David’s Bridal are among a growing list of brands that have struggled to keep up with the evolving retail market. More than 2,000 retail stores across the country closed last year, and Wall Street analysts expect more than 50,000 will close in the next five years.
Gary Orosy, adjunct professor of marketing at the SMU Cox School of Business, said he was not surprised to learn of Bed Bath & Beyond’s bankruptcy.
“As a pricing expert, it never fails to amaze me how myopic some retailers have become,” Orosy said. “Rather than compete on value, they feel their merchandise selection will overcome resistance to overly priced offerings.”
Bed Bath & Beyond said several customer programs and policies will change. It will stop accepting coupons and discounts on Wednesday. Gift cards are vaild until May 8 and items purchased before April 23 can be exchanged or returned until May 24.
Bed Bath & Beyond was founded in New Jersey by Warren Eisenberg and Leonard Feinstein more than 50 years ago. The company went public on the NASDAQ stock exchange in the early 1990s and reported $1 billion in annual sales seven years later.
In 2007, the company acquired BuyBuy Baby, a retail chain created by the sons of Feinstein that sells nursery furniture, child car seats, strollers and more. The chain’s 120 locations are expected to close with the bankrupcy.
Bed Bath & Beyond said it would reconsider plans for liquidation if the company finds a buyer. Holly Etlin, the company’s chief financial officer and chief restructuring officer, discussed her interest in the company’s sale in a court filing Sunday.
“Bed Bath & Beyond has pulled off long-shot transactions several times over the past six months so nobody should think Bed Bath & Beyond should not be able to do so again,” Etlin said.
