Bed Bath & Beyond Inc. (NASDAQ:BBBY), the US homeware retailer, will be shutting all its stores in the coming months after filing for Chapter 11 bankruptcy.
In its filing, it announced it would be looking for buyers for “some or all of its assets”.
The company currently has 400 Bed Bath & Beyond stores and 120 Buy Buy Baby shops, all of which are planned to close by June.
Aggregate net sales during this period are predicted to reach US$718mln against US$1.8bln in debt.
Investment firm Sixth Street Partners, one of the original lenders to the ‘big box store’, will provide US$240mln in debtor-in-possession financing.
The organisation has US$5.2bln in debt outweighing its US$4.4bln in assets, according to the group’s Chapter 11 filings.
Bed Bath & Beyond had previously warned of potential collapse at the start of January after a difficult 2022.
Activist investor, Ryan Cohen, popular for his involvement in GameStop during its short squeeze frenzy had been leading a campaign pushing for the sale of its baby brands.
However, Cohen was ignored and sold his entire stake in the company in August sending shares in the group sliding.
The US retailer also faced setbacks on a corporate level, including the ousting of its chief executive last year.
Shares in the company have dropped by close to 40% in pre-market trading, with the stock valued at US$0.18 on Monday.