Could Bed Bath and Beyond be the next Blockbuster? The popular retailer known for its expansive selection of home accessories filed for chapter 11 bankruptcy. This news sent shockwaves throughout the retail and home decor industry.

What Led to Bed Bath and Beyond’s Bankruptcy Filing?

There has been warning of a potential bankruptcy since early January. The company issued a “going concern” notice, indicating that it may not have enough cash to cover expenses. The notice came after a dismal holiday season, where the company suffered with poor sales and low inventory.

Bed Bath and Beyond has been facing several challenges in recent years. One of the main issues that the company had to deal with is the changing retail landscape. With the rise of online shopping, many brick-and-mortar stores have struggled to compete.

Although the company was struggling, they have been attempting to turn the business around. In 2019, the company hired Mark Tritton, a former executive at Target, as its new CEO with the goal of revitalizing the brand and improving its financial performance. Tritton’s efforts included restructuring the company’s leadership team, revamping its e-commerce platform and launching new private-label brands.

Despite Tritton’s efforts, the company continued to struggle with declining sales and profitability. The COVID-19 pandemic dealt a further blow to its finances. With its stores forced to close for several weeks during the early stages of the crisis, Bed Bath and Beyond continued to see a significant drop in revenue.

In addition to these challenges, Bed Bath and Beyond faced internal issues. The company has been slow to adapt to changing consumer trends and made unsuccessful attempts to attract younger shoppers. Bed Bath and Beyond also faced criticism for its cluttered stores and confusing pricing policies, which have turned off some customers.

The company’s stock closed at 29 cents, leading to a market value of $136.9 million. It has dropped by approximately 88 percent this year.

What Does the Bankruptcy Filing Mean?

As part of the Chapter 11 bankruptcy filing, Bed Bath and Beyond announced that it will work to liquidate its assets from its 360 namesake stores and 120 buybuy BABY locations. The company has revealed that closing sales will begin on April 26, and customers can expect to find “deep discounts” on a wide range of products. These closing sales will be a last-ditch effort to clear inventory before the affected stores close their doors permanently.

Bed Bath and Beyond’s website states that customers can shop both online and in stores during this time. Customers also can use the applications to make purchases.

For those who prefer to shop in person, the closing sales offer an opportunity to take advantage of significant discounts on a variety of home goods and furnishings. While inventory may be limited as the company clears out its stores, you can still expect to find a variety of products available for purchase.