Bed Bath & Beyond Files for Bankruptcy, East Pasadena Store Expected to Stay Open

Bed Bath & Beyond announced on Sunday that it has filed for bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. The company plans to conduct a “limited” process to sell some or all of its business.

Despite the filing, all 360 Bed Bath & Beyond stores, including the one located in Hastings Ranch on Foothill Blvd. at Sierra Madre Villa, as well as the 120 Buy Buy Baby stores and the brand’s websites will remain open.

To help fund its operations in bankruptcy, the 52-year-old retailer has raised $240 million from the investment firm Sixth Street Specialty Lending, according to the New York Times

Bed Bath & Beyond has been struggling with poor sales and competition from big-box retailers for some time. The company had warned about the possibility of bankruptcy earlier in the year. In January, Bed Bath & Beyond closed a location of its cosmetics division, Harmon Face Value, which had been open at 3609 E. Foothill Blvd. in East Pasadena.

Despite efforts to raise cash by selling more shares, the company was unable to avoid the bankruptcy filing due to its poor financial performance and strict credit agreement

Earlier this year the company’s CEO and president, Sue Gove, blamed the poor performance on inventory constraints and reduced credit limits that resulted in shortages of merchandise on store shelves.

In January, Bed Bath & Beyond closed a location of its cosmetics division, Harmon Face Value, which had been open at 3609 E. Foothill Blvd. in East Pasadena.