Bed Bath & Beyond to close another 150 stores as struggles continue

(NEXSTAR) - Just a week after announcing it would close 87 locations (which came just a couple of weeks after sharing a list of more than five dozen other stores set to close), Bed Bath & Beyond has announced it will shutter 150 additional stores as it tries to stay afloat.

The New Jersey-based company said this week that it had raised about $1 billion through offerings of preferred stock and warrants to purchase the company’s common stock. The funds will be used to pay off its debt, it said.

Bed Bath & Beyond warned on Jan. 5 that it was considering options including filing for bankruptcy, saying that there was “substantial doubt” that it could stay in business. A week later, it reported a 33% drop in sales and a widening loss for its fiscal third quarter that ended Nov. 26, compared with the year-ago period. Sales at stores opened at least a year — a key indicator of a company’s health — dropped 32%.

The newest round of closures will greatly reduce Bed Bath & Beyond's footprint. A federal filing shows the company plans to close "approximately 150 additional lower-producing Bed Bath & Beyond stores, which builds on [the] closure of approximately 200 Bed Bath & Beyond stores and approximately 50 standalone Harmon stores in the U.S."

Bed Bath & Beyond released an updated list of stores set to close in 2023 on Tuesday. It's unclear when exactly these locations will shutter.

As of May 2022, the retailer operated a total of 955 stores, including 769 Bed Bath & Beyond stores, 135 buybuy Baby stores and 51 stores under the names Harmon, Harmon Face Values or Face Values. 

In a Tuesday press release, Bed Bath & Beyond says it hopes to maintain 360 namesake stores and about 120 buybuy Baby stores.

The Associated Press contributed to this report.



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