Bed Bath & Beyond Files For Bankruptcy, VA Closing Sales Start

VIRGINIA — Home furnishings giant Bed Bath & Beyond filed for bankruptcy Sunday and is set to begin the process this week of closing its stores in Virginia and nationwide.

“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 New Jersey-based company filed for Chapter 11 bankruptcy in that state 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 were 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.

Here are the remaining Bed Bath & Beyond stores in Virginia as of April 23:

• Alexandria: 7690 Richmond Highway
• Charlottesville: 975A North Emmet Street
• Dulles: 45575 Dulles Eastern Plaza
• Falls Church: 5810 Crossroads Center Way
• Fredericksburg: 3700 Plank Road
• Glen Allen: 10050 West Broad Street
• Harrisonburg: 283 Burgess Road
• Midlothian: 11609 Midlothian Turnpike
• Newport News: 12132A Jefferson Avenue
• Roanoke: 1421 Towne Square Boulevard Northwest
• Virginia Beach: 220 Constitution Drive
• Woodbridge: 14101 Crossing Place

"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."

Bed Bath & Beyond stores in Springfield, Fairfax and at Dulles Landing, as well as in Winchester, Williamsburg and Chesapeake, are the Virginia stores targeted for closure in a Jan. 31 announcement, according to USA Today. Earlier in January, Bed Bath & Beyond said stores in Lynchburg and Gainesville were slated to close in 2023.

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."

Related:

• Party City, With 21 VA Stores, Files For Bankruptcy
• Tuesday Morning Store Closings Could Affect 12 In Virginia
• These Virginia Retailers Struggling, May Close Locations In 2023
• Loyal Companion Closing 11 VA, DC Stores After Bankruptcy Filing

Even before boutiques and malls were shut down by the coronavirus outbreak, traditional brick-and-mortar establishments saw a nosedive in revenue and popularity with the emergence of e-commerce companies such as Amazon, Target and Walmart.

Bed Bath & Beyond 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.

The filing comes as the economy is weakening and shoppers are tightening their purse strings. The company announced in August it would close about 150 of its namesake stores and slash its workforce by 20 percent.

Bed Bath & Beyond warned Jan. 5 that it was considering various options including filing for bankruptcy and said that there was "substantial doubt" that it could stay in business.

In late March, it noted that preliminary results showed anywhere from a 40 percent to 50 percent decline in sales at stores opened at least a year for the quarter that ended Feb. 25.

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

The Associated Press contributed to this story.