The beloved children’s store retailer is set to close 120 stores across the US — starting liquidation sales in just days
- Buybuy Baby has announced that it will close 120 of its stores across the United States
- The closure comes as Bed Bath & Beyond filed for bankruptcy
- All stores will be closed by June 30th as liquidation sales begin immediately
A beloved children’s retail store has announced it will close in the next few months after the company’s flagship store, Bed Bath & Beyond, filed for bankruptcy.
BuyBuy Baby will close 120 stores nationwide by June 30th and liquidation sales will begin immediately.
The retailer was bought by Bed Bath & Beyond in 2007. But the parent company filed for Chapter 11 bankruptcy protection Sunday after failing to secure the funds to stay afloat.
The closure means thousands who worked at the children’s retail store will be without jobs, along with employees at 360 Bed Bath & Beyond’s across the country.
Coupons will be valid at BuyBuy Baby through Tuesday and gift cards redeemable through May 8th.
BuyBuy Baby will close 120 stores nationwide by June 30th and liquidation sales will start immediately
A sad statement on the BuyBuy Baby website reads: ‘Thank you to all of our loyal customers. We have made the difficult decision to begin winding down our operations. Bed Bath & Beyond and BuyBuy Baby stores remain open to serve you.
The company’s stock fell Monday after the announcement.
In a statement Sunday, Bed Bath & Beyond announced that its retail stores and websites, including BuyBuy Baby, will remain open and will continue to serve customers as it begins efforts to close its retail locations.
Bed Bath & Beyond warned of possible bankruptcy in early January when it issued a “continuing” notice that it might not be able to make ends meet after a difficult holiday season.
It has struggled to keep its shares on hold due to liquidity issues and some sellers have begun requiring advance payments.
The retailer had to contend with low inventory levels, delayed sales and dwindling cash reserves.
Bed Bath did not have enough money to pay its debts and defaulted on a line of credit with JPMorgan in January.
It has been able to make the interest payments using the financing from the first stock offering, but warned that it ‘likely’ will file for bankruptcy and have its assets liquidated if the deal doesn’t go as planned.
In February, the beleaguered retailer planned to raise about $1 billion by offering preferred stock and warrants to avoid bankruptcy.
The closure means that thousands who worked in the children’s retail store will be without jobs. The company’s stock fell Monday after the announcement
Bed Bath & Beyond also announced that it had filed for Chapter 11 bankruptcy protection Sunday after failing to secure the funds to stay afloat. About 360 of their stores are set to close
The company once thrived in the midst of the pandemic and controlled 1,500 stores across the US, before experiencing several turbulent years.
The company was able to raise $360 million from the complex deal to help it pay off loan defaults and interest payments on old bonds.
But BedPath closed the deal in late March and announced plans to sell $300 million worth of its stock while again warning it might have to file for bankruptcy if it couldn’t secure the funds.
The two stores added to the list of major retailers that have gone out of business this year.
Last month , Several notable retailers, including Wal-MartAmazon, CVS, Foot Locker and Macy’s, for a group of store closings.
In total, nearly 850 stores are set to close by the end of 2023, with many forced into desperate cost-cutting measures amid rampant inflation and slumping profits.