Retailer Bed Bath & Beyond (BBBY) has filed for Chapter 11 bankruptcy protection from its creditors in the U.S.
The bankruptcy filing comes after the company’s efforts to raise enough money to continue operating failed.
Bed Bath & Beyond filed for bankruptcy in Canada this past February and announced plans to winddown its business and liquidate its inventory.
The New Jersey headquartered home goods retailer has been warning of a potential bankruptcy filing in the U.S. since January of this year.
The company said that its 360 Bed Bath & Beyond stores and 120 Buybuy Baby locations will remain open for now as it begins to shutter its business, layoff staff, and liquidate its American assets.
Court documents show that Bed Bath & Beyond has about $4.4 billion U.S. in assets and $5.2 billion U.S. in debts.
The company has more than 25,000 creditors and employs about 14,000 people. Its biggest creditor is BNY Mellon (BK), which is owes $1.18 billion U.S.
For years, Bed Bath & Beyond had healthy profits, but new online competitors such as Amazon (AMZN) began taking the retailer’s market share.
In recent years, Bed Bath & Beyond has struggled with low inventory levels, lagging sales, and a shrinking cash pile.
Shares of Bed Bath & Beyond finished trading on April 21 at $0.29 U.S. The stock has fallen 87% so far this year and is down another 42% in premarket trading today (April 24) following news of its bankruptcy filing.
