BED Bath & Beyond looks set for an eagerly-awaited return, but customers will need to keep their eyes peeled for a different name.
The popular retailer notably filed for Chapter 11 bankruptcy in April 2023.
Bed Bath & Beyond products will return to store shelves[/caption]
Since 2004, Bed Bath & Beyond spent about $11.8 billion to buy back its shares but was left with considerable debts doing so, among other moves that left it unable to recover.
The insurmountable debt, along with high inflation rates, rising interest costs, and supply chain interruptions during the coronavirus pandemic in 2020, was cited as some of the reasons Bed Bath & Beyond finally reached for a Chapter 11 filing, according to The Wall Street Journal.
The popular chain’s items will now reportedly appear on shelves at rival Texas-based chain The Container Store, according to CNN.
Beyond Inc., which dragged Bed Bath & Beyond out of bankruptcy, is also pumping $40 million into The Container Store, who have also had financial woes.
The deal aims to revitalize the former, which has seen sales plummet at its 102 stores across the US.
The partnership aims to ‘improve customer experience utilizing both the iconic’ Bed Bath & Beyond and the Container Store names, a joint press release said.
The items sold at the stores will be co-branded, the release added.
Marcus Lemonis, executive chairman of Beyond Inc, stressed that the Bed Bath & Beyond assortment would be “affordable” for customers.
“We’re thrilled to bring the beloved Bed Bath & Beyond brand back to life in this new and exciting way,” Lemonis said in the release.
“Through affordable, quality goods that will soon be on retail shelves — both physical and online — we’re reinvigorating the brand and returning to its core.”
“The Bed Bath & Beyond brand is both aspirational and attainable, and our brand will continue to reflect these values,” he added.
Beyond Inc said it would also be working on licensing agreements for Bed Bath & Beyond stores in Mexico and other international markets.
BRING IT BACK
The news is music to the ears of some customers, as they begged for the Bed Bath & Beyond brand to return once more.
“Bed Bath & Beyond is coming back from the retail death kind of,” a customer wrote in a post on Facebook about Beyond Inc’s update.
“I’ll believe it when I see it,” a skeptical shopper added.
“I miss this store!!” exclaimed another.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
“Make it like the 90s and 2000s,” another demanded.
LAST-MINUTE SAVE
As The U.S. Sun previously reported, Bed Bath & Beyond officially filed for Chapter 11 in April 2023.
Throughout the summer and into the fall, the retailer closed well over 187 remaining locations — shutting down its in-person store locations for good.
Overstock’s acquisition converted the brand to an online-only seller.
Bed Bath & Beyond had spent $11.8billion since 2004 to try and purchase its shares back.
It still had considerable debts by the time it filed for bankruptcy.
The company and several others have pointed to high inflation rates, rising interest, and supply chain interruptions as culprits for needing to reach for a Chapter 11 filing, per The Wall Street Journal.
