My wife briefly worked there. Briefly. It wasn't her most memorable or rewarding job.
The company made a bad bet on its own-store brand lines, alienating longtime customers who shopped there for deals on major brand names.
At the Wall Street Journal, "Bed Bath & Beyond Files for Bankruptcy":
Bed Bath & Beyond Inc. BBBY -2.17%decrease; red down pointing triangle filed for bankruptcy protection to wind down its business after years of losses and failed turnaround plans left the once-powerful retailer short of cash. The company had warned of a potential bankruptcy for months. It needed a $375 million loan to get through the holidays. It struck an unusual $1 billion financing deal with a hedge fund in February to put off a bankruptcy filing, then scrapped the deal and tried this month to raise $300 million from other investors. None of the moves were enough. Nor were efforts to stem losses by closing hundreds of stores. Sales evaporated and its stock price tumbled well below $1 in recent weeks, as the rescue efforts dimmed. The retailer filed for chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court in Newark, N.J., and said it expects to close all of its 360 Bed Bath & Beyond and 120 Buybuy Baby retail locations eventually. Top lender Sixth Street Partners has put up $240 million in financing to keep Bed Bath & Beyond operating through the liquidation process, the company said. Bankruptcy gives Bed Bath & Beyond the breathing room to conduct going-out-of-business sales at its physical stores and solicit interest from potential buyers for its remaining assets, such as its branding. Individual investors who continued to back Bed Bath & Beyond during its final months, when it was flooding the market with shares, will likely be wiped out in chapter 11, which prioritizes the repayment of debt over shareholder recoveries. As Bed Bath & Beyond’s situation worsened, suppliers stopped shipping goods to the retailer. Photo: Johnny Milano/Bloomberg News If a bidder emerges for the business in bankruptcy, Bed Bath & Beyond said it would pivot away from its liquidation plans to pursue a sale. Once a pop-cultural phenomenon, Bed Bath & Beyond has long been losing shoppers to rivals and struggling to stock its stores. Replacing KitchenAid mixers and other name brands with private label goods further alienated vendors and customers. Bed Bath & Beyond joins a growing list of once-ubiquitous retail chains seeking court protection. Some like J.C. Penney Co. continue to operate hundreds of stores; others like Sears and Toys ‘R’ Us closed most of their locations; while Circuit City and Linens ‘n Things disappeared altogether. The country’s largest wedding dress retailer, David’s Bridal LLC, recently filed for bankruptcy and said it would shut all of its stores if it doesn’t quickly find a buyer. It was the chain’s second bankruptcy filing in less than five years....Bed Bath & Beyond didn’t have an unprofitable year as a public company until 2019—when it reported its first annual sales decline. By then, the rise of Amazon.com Inc. and other online retailers had started to eat into the business. “We missed the boat on the internet,” Mr. Eisenberg said. A group of activist investors forced the co-founders, who had relinquished their executive duties in 2003 but remained co-chairmen, off the board in 2019. The reconstituted board hired former Target Corp. executive Mark Tritton as chief executive. Mr. Tritton moved quickly to put his stamp on the company. He sold many of the company’s noncore businesses, including Christmas Tree Shops. Then, in January 2020, he signed a deal to sell roughly half the company’s real estate to a private-equity firm and lease back the space. With the world in lockdown due to the Covid-19 pandemic, Mr. Tritton pushed through what the company called the biggest change to its assortment in a generation. It replaced name brands such as KitchenAid mixers, All-Clad cookware and OXO spatulas with private-label goods manufactured just for Bed Bath & Beyond. The rationale was sound: Private-label merchandise carries higher margins and helps retailers differentiate their offerings from competitors. The playbook has worked for countless chains from Target to Macy’s Inc. But it failed at Bed Bath & Beyond for several reasons, according to former employees and analysts. Mr. Tritton made the switch at a time when supply chains had been upended by the pandemic. Factories had temporarily closed and shipping delays were proliferating, along with rising costs, making it difficult for retailers to keep goods flowing to their stores in a timely manner. The company also rolled out too many private brands too quickly, before it had the infrastructure to support them, the former employees said. It planned to launch eight new brands in 2021 alone. At first, the results of Mr. Tritton’s strategy looked promising. Bed Bath & Beyond’s sales rose 49% in the spring quarter of 2021, compared with a year earlier when stores were closed for Covid lockdowns. Mr. Tritton presented results to the board showing that some of the early private-label launches—such as the Simply Essential line of bed, bath, kitchen, dining and storage items—were well-received by shoppers, according to people with knowledge of the company. Some of that buying was due to consumers stocking up while sheltering from the pandemic. As that demand ebbed, the gains quickly evaporated. By August 2021, sales were falling, and they continued to drop, as losses piled up. “You know if you buy Cuisinart what you are getting,” said Sheryl Bilus, a 68-year-old retired bank manager who lives in Canton, Ga. “But with their own brands, you don’t know what the quality is like.” Mr. Tritton had planned a similar overhaul of the Buybuy Baby chain by replacing Gerber and other children’s brands with private-label goods. But he was pushed out in June 2022, before he could make many of those changes. Sue Gove, a veteran retailing executive and Bed Bath & Beyond director, was named interim CEO. Meanwhile, Bed Bath & Beyond’s stock went on a wild ride after Ryan Cohen, the billionaire founder of pet retailer Chewy Inc., took a big stake in the company and agitated for changes, including the sale of Buybuy Baby. The board considered strategic alternatives for the baby chain, but decided against selling because separating it would have been time-consuming and costly, and they needed to nail down a new strategy before marketing it to potential bidders, people familiar with the situation said...
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