(UnitedVoice.com) – Store closures and layoffs are hitting the retail industry hard. In January, Bed Bath & Beyond warned investors that it was anticipating a net loss of hundreds of millions of dollars. Months later, the company announced its closing all of its home goods and Buy Buy Baby stores.
On Sunday, April 23, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection. The company also announced it was liquidating the business and closing its stores, including its subsidiary Buy Buy Baby stores. The baby retailer operates 120 stores across the US and has long been a favorite for parents. The Washington Post reported that, generally, baby items are considered a necessity, so there’s a possibility a buyer might be found.
Springfield Buy Buy Baby, Inc. Files for Chapter 11 Bankruptcy in New Jersey (Newark) https://t.co/yIgiYQli9o #business #bankruptcy #chapter11
— BKData (@bkdatabase) April 23, 2023
Bed Bath & Beyond purchased the baby retailer in 2007. A statement on the company’s website said its stores will remain open for now to serve customers. Liquidation sales began on April 26.
Ted Gavin, founder of the restructuring firm Gavin/Solmonese, told the Post that the New Jersey-based retailer had been in a “late-stage decline for a while.” He said it’s actually surprising that it lasted as long as it has.
In recent months, the shelves in the stores started to look bare. Vendors reportedly started asking for payments upfront rather than sending the retailer their bills. In the last year, the company was down more than a billion dollars. Thousands of workers are set to lose their jobs.
It’s not just Bed Bath & Beyond struggling. David’s Bridal, one of the largest bridal dress companies in the country, recently filed chapter 11 as well. Gap is laying off 1,800 employees. Walmart, Nordstrom, J. Crew, and Amazon are also shedding thousands of workers. In January, Wayfair cut about 10% of its workforce, just over 1,700 jobs.
The industry has been hit hard by inflation and other challenges to the market. Americans are holding onto their money a bit tighter as they try to recover from the upheaval of the last few years.
As for Bed Bath & Beyond and Buy Buy Baby, the stores are no longer accepting coupons, and gift cards will be valid until May 8.
Copyright 2023, UnitedVoice.com