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Bisnis.comJAKARTA – Pretail business household items united states of america Bed Bath and Beyond Inc. Ask for Protection bankruptcy Chapter 11 on Sunday (4/23/2023) local time after the company failed to raise capital.

Bed Bath & Beyond initiated the process liquidation. This company was once very popular in the 1990s as a shop for consumers looking for wedding supplies or newborn prep.

Bed Bath & Beyond has seen demand decline in recent years as its merchandising strategy to sell more store brand products has failed.

To quote Reuters, Monday (4/24/2023), the moves Bed Bath & Beyond took last year to abandon this merchandising strategy and attract more shopper-acclaimed national brands are showing no signs of success. The company reported a loss of about $393 million after sales fell 33% for the quarter ending November 26, 2022.

Based on the bankruptcy filing documents, New Jersey-based Bed Bath & Beyond filed for bankruptcy in the District Court of New Jersey, listing its assets and liabilities estimated at between US$1 billion and US$10 billion.

Bed Bath & Beyond management said it received a commitment of approximately US$240 million in receivable financing held by Sixth Street Specialty Lending Inc.

When initiating a liquidation sale, a company intends to use the Chapter 11 process to conduct a limited sales and marketing process for some or all of its assets.

The company added that its 360 Bed Bath & Beyond and 120 buybuy BABY online stores and sites will remain open and continue to serve customers as it begins efforts to close its outlets.

In January 2023, the company doubted its ability to continue in business just months after announcing more than $500 million in new funding, as well as layoffs and closures of 150 stores.

In February 2023, the company planned to raise approximately US$1 billion through a preferred stock and warrant offering to avoid bankruptcy. The company was able to raise US$360 million through complex transactions. These efforts helped him pay for defaults on loans and interest payments on senior notes.

Kendari said Bed Bath & Beyond terminated the deal at the end of March 2023 and announced its intention to sell its stake for $300 million. The company had warned that it might have to file for bankruptcy if it could not obtain funds.

In February 2023, according to court documents, the Canadian operation Bed Bath & Beyond ceased operations. The Canadian division, which operated 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, went bankrupt.

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