Bed Bath & Beyond Canada shutting down, taps Alvarez & Marsal as monitor

14 February 2023 1 min. read
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Bed Bath & Beyond’s Canadian division will be winding down its operations, according to a creditor protection filing by its monitor Alvarez & Marsal.

The consulting firm on February 10 filed for and was granted an order of creditor protection under the Companies’ Creditors Arrangement Act on behalf of Bed Bath & Beyond Canada.

The retail chain’s Canadian division is insolvent and cannot restructure its operations without support from the US parent, the court document posted on Alvarez & Marsal's website said. The US parent company has ultimately opted not to provide further operational or financial support to its Canadian arm.

Bed Bath & Beyond Canada had a net loss of $99.5 million in the nine months leading up to November 26, 2022. Its assets on November 26 were valued at $480.1 million and its total liabilities were $429.7 million.

Bed Bath & Beyond Canada shutting down, taps Alvarez & Marsal as monitor

The Canadian division as of January 31 employed 387 full-time employees and 1,038 part-time workers across 54 stores nationwide. The schedule for the closure of all of the Canadian Bed Bath & Beyond and Buy Buy Baby sub-brand stores has yet to be determined.

The news of the Canadian division’s impending shutdown arrives shortly after Bed Bath & Beyond raised approximately $1 billion through offerings of preferred stock and warrants, which it will use to pay off debt.

The US retailer last month announced it was considering filing for bankruptcy amid declining sales and mounting debt. The company also reportedly hired consulting firm AlixPartners to advise on turnaround strategy.

Bed Bath and Beyond’s previous turnaround plan from August 2022 included the closure of 150 US stores, cost reductions, and layoffs.