The Canadian operations of Bed Bath & Beyond is going out of business and will be shutting 54 stores across the country, according to court filings dated February 10, 2023.
The documents, which can be found on the website of consulting firm Alvarex and Marsal, state that despite efforts for “long-term success,” operations were impacted by the pandemic. The company suffered from supply chain disruptions and inflation, resulting in inventory levels “at historic lows.”
View this post on Instagram
“Further, a significant amount of capital is required to replenish the inventory in Canada, satisfy accounts payable, and rebuild vendor relationships,” states the document.
Over a nine-month period ending on November 26, 2022, Bed Bath & Beyond Canada saw significant losses. The document states that Canadian operations are “not profitable on a standalone basis.” The company also operates 11 buybuy BABY stores across the country.
“Ultimately, the Bed Bath & Beyond Group’s liquidity constraints resulted in a significant number of key suppliers either tightening or revoking the ability of the Bed Bath & Beyond Group to access inventory on credit,” states the document.
According to the document, as of January 31, 2023, the company employs 387 full-time employees and 1,038 part-time employees in Canada.
View this post on Instagram
As of November 26, 2022, Bed Bath & Beyond Canada had total assets worth around $427.4 million and total liabilities of approximately $342.8 million, while buybuy BABY Canada had assets worth around $52.7 million and liabilities worth $86.9 million.
South of the border, the company’s US retail stores aren’t doing any better. Business Insider states that from 1,000 stores nationwide, Bed Bath & Beyond plans to shrink that number down to just 360.
A report by Reuters states that the company has already managed to raise $225 million out of the roughly $1 billion it needs to avoid bankruptcy. It plans to raise the remaining $800 million in the next ten months.
Follow Channels and Categories