New York
CNN
—
Bed Bath and Beyond is closing another 87 stores as the struggling retailer barrels toward bankruptcy.
These closures are in addition to the 150 closures Bed Bath and Beyond announced last August. Included in the new list are 5 buybuy Baby locations and all 49 remaining Harmon Face Value stores, which sold cosmetics, plus several of the retailer’s flagship-brand stores across the country.
“As we continue to work with our advisors to consider multiple paths, we are implementing actions to manage our business as efficiently as possible,” a Bed Bath and Beyond spokesperson told CNN. “This store fleet reduction expands the company’s ongoing closure program.”
A company spokesperson also confirmed Wednesday night that it missed a bond payment on February 1, and that it entered a month-long grace period. Debtors will often have a 30-day grace period to make payments before they enter default.
“We are committed to updating all stakeholders on our plans as they develop and finalize,” the spokesperson said.
The spokesperson did not confirm the amount Bed Bath and Beyond owes. However, the Wall Street Journal reported Bed Bath and Beyond “failed to pay more than $28 million on three tranches of notes totaling roughly $1.2 billion due on Feb. 1.”
Founded in 1971, Bed Bath & Beyond became a staple for affordable home decor, kitchenware and college dorm room furniture. The retailer became known for its ubiquitous 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} off blue coupons, and cavernous stores with merchandise stacked high to the ceilings. Bed Bath grew its corporate footprint aggressively, peaking at 1,552 stores in 2017.
But it struggled to make the transition to online shopping and to fend off larger chains like Walmart and Target. The retailer started making small trims in 2018 and, in the first year of the pandemic, started closing hundreds of stores, primarily its Bed, Bath and Beyond operations, and getting rid of some of its weaker brands, such as its Christmas Tree Shops.
As of last February, the company had 953 stores left, and it has announced plans to close more than 200 additional stores since then.
The closings not only reduced employee head count and salary expenses, but also the rent it pays. The company’s total store square footage fell by 36{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in the four fiscal years ending in February in 2022.
But few troubled retailers have turned around long-term problems through store closings alone. Closings not only reduce costs, they reduces sales. Still, for a cash-starved company, like Bed, Bath and Beyond, the liquidation of inventory can help to raise the cash it needs to help fund operations through a reorganization.
Last week, the company warned in a regulatory filing that it received a notice of default from its lender, JPMorgan Chase. The company said that “at this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this will lead the company to consider all strategic alternatives, including restructuring its debt under the US Bankruptcy Code.”
Bed Bath and Beyond defaulted “on or around” January 13, according to the Securities and Exchange Commission filing. It could be forced to file for Chapter 11 bankruptcy reorganization due to its financial woes.
These are the locations Bed Bath and Beyond plans to close in the coming weeks:
- 6850 US Highway 90 Anchor D in Daphne, Alabama
- 4122 McCain Blvd. in North Little Rock, Arkansas
- 1834 South Signal Butte Road in Mesa, Arizona
- 1905 Calle Barcelona Suite 100 in Carlsbad, California
- 10822 Jefferson Blvd. in Culver City, California
- 2385 Iron Point Road. in Folsom, California
- 1405 East Gladstone Street in Glendora, California
- 14351 Hindry Avenue in Hawthorne, California
- 72459 Highway 111 in Palm Desert, California
- 10537 4S Commons Drive, Suite 170 in San Diego, California
- 165 S. Las Posas Road in San Marcos, California
- 1865 North Campus Avenue, Building #15 in Upland, California
- 3125 South Mooney Blvd. in Visalia, California
- 1605 Fall River Drive in Loveland, Colorado
- 16531 Washington Street in Thornton, Colorado
- 20 Hazard Avenue in Enfield, Connecticut
- 2260 Kings Highway in Fairfield, Connecticut
- 835 Queen Street in Southington, Connecticut
- 1065 Silas Deane Highway in Weathersfield, Connecticut
- 2239 East Semoran Blvd in Apopka, Florida
- 20560 State Road 7 in Boca Raton, Florida
- 371 North Congress Ave. in Boynton Beach, Florida
- 320 Brandon Town Center Dr. in Brandon, Florida
- 4631 North University Dr. in Coral Springs, Florida
- 14824 South Military Trail in Delray Beach, Florida
- 1460 West 49th St. in Hialeah, Florida
- 6001 24 Argyle Forest Blvd in Jacksonville, Florida
- 3221 City Station Drive, Suite 125 in Jacksonville, Florida
- 397 North Alafaya Trail in Orlando, Florida
- 540 North State Road 7 in Royal Palm Beach, Florida
- 1 Buckhead Loop in Atlanta, Georgia
- 3615 South Federal Way in Boise, Idaho
- 9650 South Ridgeland Avenue in Chicago Ridge, Illinois
- 5786 Northwest Highway in Crystal Lake, Illinois
- 215 Harlem Avenue in Forest Park, Illinois
- 1584 South Randall Rd. in Geneva, Illinois
- 3232 Lake Ave., Suite 125 in Wilmette, Illinois
- 2515 Corridor Way Suite 5 in Coralville, Iowa
- 15335 West 119th Street in Olathe, Kansas
- 4350 Summit Plaza Drive in Louisville, Kentucky
- 200 Harker Place Suite 200 in Annapolis, Maryland
- 12641 Ocean Gateway Suite 240 in Ocean City, Maryland
- 200 Clifton Blvd in Westminster, Maryland
- 3 Abbott Park in Burlington, Massachusetts
- 820 Providence Highway in Dedham, Massachusetts
- 458 State Road, Rt 6, Suite 100 in North Dartmouth, Massachusetts
- 665 Merrill Road in Pittsfield, Massachusetts
- 600 South Street West, Suite 13 in Raynham, Massachusetts
- 7961 Southtown Center in Bloomington, Minnesota
- 10770 Sunset Hills Plaza in St. Louis, Missouri
- 155 Promenade Blvd. in Bridgewater, New Jersey
- 276 Route 202/31 in Flemington, New Jersey
- 1160 Route 23 North in Kinnelon, New Jersey
- 1121 Highway 34, Suite A in Matawan, New Jersey
- 190 Hamilton Commons in Mays Landing, New Jersey
- 8 Centerton Road in Mt. Laurel, New Jersey
- 5131 Sunrise Highway in Bohemia, New York
- 850 Third Avenue in Brooklyn, New York
- 459 Gateway Drive in Brooklyn, New York
- 72 15 25th Avenue in East Elmhurst, New York
- 251 East Main Street in Elmsford, New York
- 1490 Union Turnpike in New Hyde Park, New York
- 2020 South Road, Suite 3 in Poughkeepsie, New York
- 3064 Route 50 in Saratoga Springs, New York
- 1455 East Lasalle Drive in Bismarck, North Dakota
- 3750 Easton Market in Columbus, Ohio
- 1700 Oxford Drive in Bethel Park, Pennsylvania
- 3739 William Penn Highway in Monroeville, Pennsylvania
- 1261 Knapp Road in North Wales, Pennsylvania
- 160 Quinn Drive in Pittsburgh, Pennsylvania
- 205 West Blackstock Road in Spartanburg, South Carolina
- 5523 Highway 153, Suite 112 in Hixson, Tennessee
- 870 South White Station Road in Memphis, Tennessee
- 420 East FM 3040 Suite 300 in Lewisville, Texas
- 6400 West Plano Parkway, Suite 125 in Plano, Texas
- 2112 SW HK Dodgen Loop in Temple, Texas
- 1678 West Redstone Center Drive in Park City, Utah
- 1324 Greenbrier Parkway in Chesapeake, Virginia
- 24670 Dulles Landing Dr Unit 150 in Dulles, Virginia
- 12100 Fairfax Towne Center in Fairfax, Virginia
- 6642 Loisdale Rd. in Springfield, Virginia
- 4900 Monticello Ave, Suite 4 in Williamsburg, Virginia
- 2540 South Pleasant Valley Road in Winchester, Virginia
- 7809B Vancouver Plaza Dr #102 in Vancouver, Washington
- 1630 West Poplar Street in Walla Walla, Washington
- 395 Target Way in Morgantown, West Virginia
- 3575 Rib Mountain Drive in Wausau, Wisconsin
– CNN’s Chris Isidore contributed to this report
