IKEA’s American competition collapsed

By: Trademagazin Date: 2023. 04. 24. 10:54

Bed Bath & Beyond, one of the dominant furniture and home improvement store chains in the United States, filed for bankruptcy on Sunday.

The large enterprise, founded in 1971, filed for bankruptcy protection in a district court in the state of New Jersey, where it is based, on Sunday. In its announcement, it indicated that in parallel with this, it is gradually reducing its business activities and is looking for a buyer for its approximately 500 remaining stores all at once or in parts. In the bankruptcy filing, it also indicated that it expects to close all of its stores by June 30.

The management of Bed Bath & Beyond already indicated in January that it may apply for bankruptcy protection in the near future, and then in February announced that it needs $1 billion in additional capital to maintain its functionality. Compared to this, until the end of March, investors offered only slightly more than 400 million dollars to save the trading company.

As part of the downsizing of its activities, the store chain will stop one of its most popular business models, the acceptance of 20 percent discount coupons, and close its other marketing campaigns within days, but at the same time it will start selling its remaining stocks at a discount from Monday.