Bed Bath & Beyond Canada closes and closes 54 stores

Bed Bath & Beyond Canada closes and closes 54 stores

Bed Bath & Beyond’s Canadian operations are going bankrupt, according to a court filing on Friday, two days after the retailer quickly raised funds to avoid bankruptcy in the United States.

The Canadian division, which operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, is insolvent, the filing published on the consultancy’s website Alvarez & Marsal showed. Alvarez & Marsal has been named corporate monitor in the Canadian court case.

The Canadian company does not have the “capacity or ability to independently effect a recapitalization or restructuring of Canadian operations without access to cash and support” from the parent company and its lenders, according to the filing.

As of Jan. 31, the company employed about 387 full-time and 1,038 part-time employees in its retail operations across Canada, according to the filing.

Bed Bath & Beyond Canada Ltd., on Friday obtained an initial order for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act, according to Alvarez & Marsal.

Bed Bath & Beyond Canada reported a net loss of $99.5 million for the nine-month period ending Nov. 26, 2022, the documents show.

As of Nov. 26, Bed Bath & Beyond Canada’s assets were valued at about $480.1 million, according to the documents, while its total liabilities were worth about $429.7 million.

Buybuy BABY Canada will close 11 stores

Adjusted earnings for the past three years have been negative, and the retail giant’s Canadian arm has contributed to significant negative adjusted profit margins for the parent company, the documents show.

US parent company Bed Bath & Beyond Inc. closed dozens of its stores across the country and warned last month that it may have to file for bankruptcy protection because it was unable to repay its debts. loans.

Customers are shopping at Bed, Bath & Beyond in New York in 2021. (Mark Lennihan/Associated Press)

He recently raised about $1 billion through preferred stock and warrant offerings, which he says will be used to pay down debt.

The documents indicate that the parent company has determined that it is no longer able to provide financial and operational support to its Canadian branch.

Buybuy BABY Canada had assets worth US$52.7 million and liabilities of approximately US$86.9 million.

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