Bed Bath & Beyond Inc, an American distribution brand specializing in the sale of household items, announced on Sunday that it had initiated safeguard proceedings in the United States for failing to raise enough funds to stay afloat.
The group filed for Chapter 11 bankruptcy protection in a court in New Jersey, where it is based.
It valued both its assets and liabilities in the range of $1 billion to $10 billion (€900 million to €9 billion), according to court documents.
Bed Bath & Beyond said its nearly 500 still-open stores and online sites would continue to serve customers.
Towards a drop in quarterly sales of 40 to 50%
Last February, the group had tried to raise about $1 billion through a preferred stock offering and option warrants in a bid to avoid bankruptcy, eventually managing to raise $360 million to help it pay off its debts.
Bed Bath then announced at the end of March the end of this operation and its intention to sell 300 million dollars of its own shares, warning that it could be forced to declare bankruptcy.
The group, which became popular with young American households in the 1990s, has seen its clientele dwindle in recent years. It reported in the third quarter of its fiscal year, which ended at the end of November, a loss of around 393 million dollars after a 33% drop in its billing.
At the end of March, Bed Bath said it expected a 40-50% drop in comparable sales in the fourth quarter and more operating losses.
Source: BFM TV
