After 5 decades, Bed, Bath & Beyond In 2023 he declared bankruptcy, hosting Chapter 11. The firm, which had been one of the preferred ones in the US for the sale of decoration products and household items began a process of Branch closure in what was a kind of slow agony. Now, already sanitized, return with a new name –Bed, Bath & Beyond Home– And an objective: reach 2026 with 75 stores already installed.
Founded in 1971, Bed, Bath & Beyond had announced through its website its end with a statement: “Thanks to all our happy clients. We make the difficult decision to start closing our operations“. And their stores began to close their doors over time.” We deeply appreciate our associates, customers, partners and the communities we serve, and we are still firmly determined to serve them throughout this process, “continued the letter that began to put an end to the company from its bankruptcy.
The reasons for bankruptcy in 2023
Despite attempts to increase its competitiveness and position itself in a broad and ambiguous market, Bed, Bath & Beyond in 2023 had a USD debt 5.2 billion and assets of only USD 4,400 million. To close your stores and stay afloat during the closing process, she was able to get a financing of USD 240 million. The exponential growth of online sale and the determining strengthening of competition became a challenge What Bed, Bath & Beyond He could not bear.
To accelerate the merchandise sale process they had in stock, they offered discounts And they warned that after buying the products on a certain date, the possibility of return or change due to the definitive closure of their branches due to the bankruptcy that the firm of decoration products had declared.
Warren Eisenberg, the company’s co-founder, had indicated: “We lost the train on the Internet“, During an interview with The Wall Street Journal. This was due to the fact that, although the physical stores that the brand had began to sell online, the change and transition necessary to be included in the online market took too long.
The competitive market and the multiple alternatives of stores like Amazon hindered the land Bed, Bath & Beyond that could not be maintained in the commercial circuit.
The pandemic By Coronavirus of the year 2020 he finished sealing his end. The closure of its branches was a Hard blow For the iconic company that not only not being able to sell physically, but its market rivals as Walmart remained open for being considered an essential service. During that year, the company’s sales fell 17% and in 2021 15%.
Reopening and keys to the renewal of the brand
Now, the company reopens with a new name “Bed, Bath and Beyond Home”, and will be directly linked to The Brand House Collective, Inc.with the opening of its first branch in Nashville, Tenesse. The opportunity to reinvent yourself is close to being able to be fulfilled.
The brand that opted to reposition the company again in the market wants to keep the legacy and emphasize the renewal behind the transformation of the company. The executive director of The Brand House Collective, Amy Sullivan, mentioned: “This is not just a store, it is a new beginning For a brand that means something special for so many families “and put the focus on the desire for the future:” With Bed Bath & Beyond Home, we fulfill our mission of offering excellent brands, for all budgets, in each room. “
Source: Ambito
