Bed Bath & Beyond Declares Bankruptcy, Plans to Close All Stores

After 52 years in business, Bed Bath & Beyond—the go-to chain for excited first-year college students picking up dorm room essentials and engaged couples registering for gifts—has declared bankruptcy and plans to close all of its 360 stores by June 30th.

Announced on April 23, the company filed for Chapter 11 bankruptcy protection following years of diminishing sales and losses, unable to evolve as online retailers took over. At the beginning of 2023, Bed Bath & Beyond closed hundreds of its locations, plus 120 of its buybuyBABY stores, in an attempt to reduce costs and avoid bankruptcy.

Discount stores, including Home Goods, TJ Maxx, and Costco undercut Bed Bath & Beyond’s prices, resulting in the declining sales that were further impacted when the chain temporarily closed its stores during the pandemic. At the same time, competitors like Walmart and Target, identified as “essential retailers,” stayed open. Bed Bath & Beyond’s website never gained online customer loyalty like bigger websites with more selections, including Wayfair and Overstock.

"Millions of customers have trusted us through the most important milestones in their lives—from going to college to getting married, settling into a new home to having a baby," said Sue Gove, president and CEO of Bed Bath & Beyond Inc, in a statement. "We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process. We will continue working diligently to maximize value for the benefit of all stakeholders."

Customers will still be able to shop at Bed Bath & Beyond (online, in stores, and on the app) in the coming months, "as the Company begins its efforts to effectuate the closure of its retail locations," the statement reads.

According to the company's website, "deep discount" closing sales will begin on April 26, and all purchases made after that date will be final. Returns and exchanges will be accepted until May 24 for items purchased before April 22. Gift cards, gift certificates, and loyalty certificates can be used through May 8. If you have any blue-and-white 20% off coupons stored away, you must use them before April 26.

The closure of Bed Bath & Beyond comes as other brick-and-mortar retailers, including David’s Bridal and Party City have recently declared bankruptcy. In the past few years, Pier 1, Steinmart, and Sears (18 of its 3,500 stores remain open) have also shut their doors. Consumers can expect to see retailers that were once cultural staples closing as online shopping continues to gain in popularity due to more options, lower prices, and easy returns.