Bed Bath & Beyond Files For Bankruptcy: Dying Business Model?
UNION, N.J. – Back in late April of 2023, retail behemoth Bed Bath & Beyond Inc. announced that it had filed for bankruptcy in the District of New Jersey. According to the official press release, the move was designed “to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets.”
The Company’s 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will reportedly remain open and continue serving customers as the company begins to close retail locations.
“Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby,” said Sue Gove, president and CEO of Bed Bath & Beyond Inc. “Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY. We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process.”
Does the bankruptcy signal yet another bad sign for large chains? According to Shelby Rothenberg, manager of Customer Success for Illinois-based Kapoq, it depends on the store. “These exclusive big box retail stores that focus on niche categories have shown to be a dying business model that are late to adopt digital e-commerce retail strategies,” Rothenberg says. “Who knows what will happen with Bed Bath & Beyond. They might close all stores and become an e-commerce operation. The fact that Amazon is the everything store provides a home for customers to shop and purchase products across all varying categories in one convenient place.”
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