The beloved baby-shop retailer is about to close 120 stores in the US — as liquidation sales begin in days
- Buybuy Baby has announced that it will close 120 of its stores in the US
- The closure comes after Bed Bath & Beyond filed for bankruptcy
- All stores will close on June 30, as liquidation sales will begin immediately
A beloved baby store announced it will close in the coming months and all must go — after the company’s parent store, Bed Bath & Beyond, filed for bankruptcy.
BuyBuy Baby is closing 120 stores nationwide by June 30 and liquidation sales will begin immediately.
The retailer was purchased by Bed Bath & Beyond in 2007. But the parent company filed for Chapter 11 bankruptcy protection on Sunday after failing to secure funds to stay afloat.
The closures mean thousands who worked at the baby store will be out of work, as will 360 Bed Bath & Beyond’s employees across the country.
Coupons are valid through Tuesday at BuyBuy Baby and gift cards can be redeemed through May 8.
BuyBuy Baby is closing 120 stores nationwide by June 30 and liquidation sales will begin immediately
A mournful statement on BuyBuy Baby’s website read: ‘Thank you to all our loyal customers. We have made the difficult decision to start winding down our activities. The Bed Bath & Beyond and BuyBuy Baby stores will remain open to serve you.”
Shares of the company plummeted Monday after the announcement.
In a statement released on Sunday, Bed Bath & Beyond announced that stores and websites, including BuyBuy Baby, will remain open and continue to serve customers as it begins efforts to force closure of its retail locations.
Bed Bath & Beyond warned of possible bankruptcy in early January when it issued a going concern report that it may not be able to cover its costs after a difficult holiday season.
It struggled to keep its stocks on the shelf due to liquidity issues and some sellers began asking for prepayments.
The retailer had to contend with low inventory levels, lagging sales and dwindling cash reserves.
Bed Bath didn’t have enough money to pay its debts and defaulted on a line of credit with JPMorgan in January.
It was able to make its interest payments with funding from the initial equity offering, but warned it would “probably” file for bankruptcy and see its assets liquidated if the deal didn’t go as planned.
In February, the embattled retailer planned to raise about $1 billion by offering preferred stock and warrants to avoid bankruptcy.
Thousands of people who worked at the baby store are out of work because of the closures. Shares of the company plummeted Monday after the announcement
Bed Bath & Beyond also announced they filed for Chapter 11 bankruptcy protection on Sunday after failing to raise funds to stay afloat. About 360 of their stores are closing
The company once thrived during the pandemic, commanding 1,500 stores in the US, before being hit by a tumultuous few years
The company was able to raise $360 million from the complex deal, enabling it to pay loan defaults and interest payments on senior notes.
But Bed Bath ended the deal in late March, announcing plans to sell $300 million worth of stock, while also warning again that it may have to file for bankruptcy if it fails to secure the funds.
The two stores have been added to the list of major retailers going out of business this year.
Last month, several prominent retailers, including WalmartAmazon, CVS, Foot Locker and Macy’s, announced a slew of store closures.
In all, nearly 850 stores will close by the end of 2023, many forced into desperate cost-cutting measures amid rampant inflation and falling profits.