“Bed Bath & Beyond files for Chapter 11 bankruptcy amidst plummeting clientele and significant losses”

The group, which became popular with young American households in the 1990s, has seen its clientele plummet in recent years.

Bed Bath & Beyond Inc, an American distribution brand specializing in the sale of household items, announced on Sunday that it had started a safeguard procedure in the United States for failing to raise enough funds to stay afloat.

The group has filed for Chapter 11 bankruptcy protection in a court in New Jersey, where it is headquartered.

It has valued both its assets and liabilities in the range of $1 billion to $10 billion (€0.9 billion to €9 billion), according to court documents.

Bed Bath & Beyond said its nearly 500 stores and online sites still open will continue to serve customers.

Towards a drop in quarterly sales of 40 to 50%

Last February, the group had sought to raise around $1 billion via an offering of preferred shares and option warrants in an attempt to avoid bankruptcy, eventually managing to raise $360 million to help it repay its debts.

Bed Bath then announced at the end of March the end of this operation and its intention to sell 300 million dollars of its own shares, warning that it could be forced to file for bankruptcy.

The group, which became popular with young American households in the 1990s, has seen its clientele plummet in recent years. It reported in the third quarter of its fiscal year, ending at the end of November, a loss of around 393 million dollars after a 33% plunge in its turnover.

At the end of March, Bed Bath said it expected a fall of around 40% to 50% in its like-for-like sales in the fourth quarter and further operating losses.