A former retail fixture familiar to millions of Americans has filed for Bankruptcy and will soon become a distant memory as the economy continues to tank under Joe Biden’s watch.
Bed Bath & Beyond reportedly filed for reorganization under Chapter 11 of the federal bankruptcy laws.
The company said I had $4.4 billion in assets and $5.2 billion in debt, according to the bankruptcy filing, as reported by CNN.
In 2021, calls to boycott the retailer’s products came after Bed Bath and Beyond dumped Mike Lindell’s ‘MyPillow’ products from all of its stores.
In the wake of the bankruptcy filing, the company is now closing all its stores across the U.S. as the economy worsens.
The company also said it would also try to sell any remaining assets anyone wants to buy.
Bed Bath & Beyond has been struggling since the pandemic hit and teetering on Bankruptcy’s edge throughout the year.
It had previously proposed massive store closings to focus on online sales.
“We are going to see the Darwinism of retail,” Michael Lasser, a retail analyst at investment firm UBS said, according to The New York Times.
He said the coming year “will be characterized, in part, by seeing that play out after this period of what would have been a pause in the Darwinism.”
The managing director at data analysis company GlobalData’s retail division, Neil Saunders, said the filing demonstrates the difficulty of rebounding when a cash shortage triggers a loss of inventory and sales.
“It’s a death spiral,” he said.
“If you can’t get the stock, you can’t make the sales. If you can’t make the sales, your credit deteriorates. If your credit deteriorates, people are less willing to supply you. That cycle seems impossible to break,” Saunders explained.
Earlier this week, National bridal retailer David’s Bridal also filed for reorganization under Chapter 11 bankruptcy, citing poor retail sales and other woes.
The blow comes just days after the bridal chain announced it would lay off more than 9,000 workers.
The company filed for Chapter 11 reorganization in 2018 after being swamped om $400 million in debt.