Shut Down: Bed Bath & Beyond Files For Bankruptcy
After struggling with financial difficulties for some time, the company filed for Chapter 11 bankruptcy protection on Sunday and announced the discontinuation of their well-known coupons come Wednesday, reports the MorningBrew.
In line with its bankruptcy and liquidation process, the firm disclosed plans to shut down all 360 BB&B locations and its 120 Buybuy Baby outlets by June 30. That’s the plan unless a last-minute purchaser saves it from closure.
A misguided gamble on private labels
The downfall of this business can’t be attributed to “economic uncertainty.” A series of poor choices by Bed Bath & Beyond’s management contributed to its collapse, with the most significant blunder being its shift to private-label products. These are items manufactured solely for the retailer.
Mark Tritton, a former Target executive brought in by activist investors in 2019, spearheaded the initiative. At Target, Tritton successfully launched numerous profitable private-label lines, presenting a viable model for other retailers to emulate.
However, when Tritton attempted to duplicate his achievements at Bed Bath & Beyond, the plan fell apart like an inferior blender. In categories like kitchen gadgets, brand names are crucial. Customers stopped visiting Bed Bath & Beyond after it replaced KitchenAid mixers and OXO garlic presses with its own merchandise.
What’s Next For Bed, Bath & Beyond?
A colossal liquidation sale rivaling those of Toys R Us and Circuit City in the past 15 years, as noted by Axios.
Additionally, if you’re among the numerous individual investors who jumped on the Bed Bath & Beyond bandwagon when it was a popular meme stock last year, it’s time to accept the consequences and move forward. In bankruptcy cases, creditors take precedence over stockholders, leaving meme-stock traders empty-handed.