Bed Bath & Beyond Files For Bankruptcy; Newtown Location To Close

UNION, NJ — Home furnishings giant Bed Bath & Beyond filed for bankruptcy Sunday and is set to begin the process this week of closing its stores. The company operates a store locally in the Newtown Shopping Center next to Staples and Chick-Fil-A.

“Thank you to all of our loyal customers,” the retailer’s website said. “We have made the difficult decision to begin winding down our operations.”

The Union, New Jersey-based company filed for Chapter 11 bankruptcy in New Jersey and listed its estimated assets and liabilities at up to $10 billion. So far this year, party supplies chain Party City and David's Bridal have been among the retailers that have filed for Chapter 11.

The firm said its 360 Bed Bath & Beyond and 120 Buy Buy Baby stores and websites will remain open and continue serving customers as it "begins its efforts to effectuate the closure of its retail locations." Closing sales are set to start Wednesday, at which point coupons will no longer be accepted. Rewards, gift cards, merchandise credits and certain returns will be accepted through various points in May.

"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," President and CEO Sue Gove said in a company news release announcing the bankruptcy filing.

"We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders."

Despite its plans for liquidation, the company intends to use the bankruptcy proceedings for the sale of some or all assets, filing motions to market Bed Bath & Beyond and Buy Buy Baby for auction.

"In the event of a successful sale, the company will pivot away from any store closings needed to implement a transaction," the news release said. "The company believes this dual-path process will best maximize value."

The retailer said it secured a commitment of roughly $240 million in financing from Sixth Street Specialty Lending Inc. to allow it to keep operating during the bankruptcy process.

For more information about the bankruptcy filing, visit restructuring.ra.kroll.com/bbby.

Anna Schier, Patch Staff, contributed to this report.