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- Bed Bath & Beyond filed for Chapter 11 protection in New Jersey Sunday, a court filing showed.
- The retailer had suffered from sliding sales, making its financial position increasingly precarious.
- It warned last year that there was "serious doubt" about its long-term prospects.
Bed Bath & Beyond filed for Chapter 11 bankruptcy protection in New Jersey Sunday, according to a court filing.
The US home goods retailer warned last year that it had "serious doubt" about surviving after grappling with sliding sales.
The chain has closed hundreds of stores, cut jobs and taken other steps in recent years in a bid to shore up its finances.
A turnaround plan to raise $1 billion from a hedge fund in February was subsequently abandoned. In another last-ditch move, Bed Bath & Beyond tried this month to raise $300 million from other investors.
All those efforts have failed to adequately improve its situation, however.
Its shares have fallen 87% this year, valuing the company at just $138 million on Friday.
A number of factors have played a part in the company's downfall. It was forced to temporarily close its stores during the pandemic, which saw its sales decline in 2020 and 2021.
A series of efforts to invigorate the company in recent years have fallen short and it's seen a number of changes at executive level. The company also recently missed payments on roughly $1 billion worth of bonds.
The company's former president, Arthur Stark, told Bloomberg that offering coupons wasn't the right approach for it long-term as it meant they couldn't reduce the discounts without alienating customers.
Mark Tritton became CEO in 2019 and tried to shift it away from national brands in favor of its own ten private-label brands. It then said it would reverse this approach last year after it drove customers away. Tritton was ousted as CEO last June and replaced by Sue Gove as a result of the falling sales.
Holly Etlin, who was appointed as interim CFO in February, has been tapped by the company to serve as chief restructuring officer and will oversee the liquidation and sale process, the Chapter 11 filing shows.
She took over as interim CFO from Laura Crossen, who stepped up following the death of Gustavo Arnal in September. He died after falling from a high-rise building in Manhattan.
Crossen has since resumed her position as the chief accounting officer and vice president of finance.
This is a breaking news story. Check back for updates.
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