Bed Bath & Beyond plunged into further chaos as retail giant edges closer to bankruptcy –

BED Bath & Beyond has been plunged into further chaos as it teeters on the edge of bankruptcy.

The renowned homeware retailer is also going out of business in Canada, according to a court filing on Friday.

It came just two days after bosses brought the company back from the brink after raising enough cash to keep their US stores on life support.

The Canadian division, which operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, is reportedly insolvent.

The filing posted on the website of consultancy Alvarez & Marsal showed said they don’t have the “capacity or ability to independently effect a recapitalization or restructuring of the Canadian operations without access to cash and the support”.

Alvarez & Marsal has been appointed as a monitor of the business in the Canadian court case.

Bed Bath and Beyond quietly closes another store with looming bankruptcy

The filing stated that Bed Bath & Beyond’s retail operations across Canada had 387 full-time and 1,038 part-time employees.

The company was granted an initial order for creditor protection by the Ontario Superior Court of Justice Friday under the Companies’ Creditors Arrangement Act, according to Alvarez & Marsal.

The Canadian division had a net loss of $99.5 million for the nine-month period ending November 26, 2022.

Buybuy BABY Canada had assets worth $52.7 million and liabilities of about $86.9 million.

U.S. parent company Bed Bath & Beyond Inc. has been facing a debt crisis and are in the process of closing 150 stores by the end of March.

More than 50 closures had already been announced, but another 62 locations were confirmed earlier this month.

California is losing eight locations, Florida will lose six, and Michigan will drop five stores.

Some of the closures come as Bed Bath & Beyond has defaulted on its credit line with JPMorgan Chase & Co.

It owes $550million to Chase and another $375million to lender Sixth Street.

Net sales for the company’s third-quarter ending November 26 were about $1.26billion, a historically low number.

This number was considerably lower than the $1.88billion in sales at the same time in 2021.

Demand has dwindled in recent years as Bed Bath & Beyond’s decision to sell more store-branded products flopped.

As they shrink their retail presence to save money, CEO Sue Grove told customers they are considering a “turnaround plan” after raising  $225 million in a securities sale.

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