Bed Path & Beyond files for bankruptcy

The group, which gained popularity among young American families in the 1990s, has seen its clientele decline in recent years.

Bed Bath & Beyond Inc, a US distribution brand that specializes in selling home products, announced on Sunday that it has initiated security proceedings after failing to raise enough funds to float in the US.

The group has filed for Chapter 11 bankruptcy protection in a court in New Jersey, where it is headquartered.

It valued both its assets and liabilities at between $1 billion and $10 billion (€0.9 billion to €9 billion), according to court documents.

Bed Bath & Beyond said its nearly 500 stores and online sites that are still open will continue to serve customers.

Towards a 40 to 50% drop in quarterly sales

Last February, the group sought to raise about $1 billion through preferred stock and option warrants in an attempt to avoid bankruptcy, and eventually managed to raise $360 million to help repay its debt.

Bed Bath later announced the end of the move in late March and its intention to sell $300 million of its own stock, warning it could be forced to file for bankruptcy.

The group, which gained popularity among young American families in the 1990s, has seen its clientele decline in recent years. In the third quarter of its fiscal year, which ended at the end of November, it posted a loss of about $393 million after its revenue fell 33%.

At the end of March, Bed Bath said it expects its sales to fall 40% to 50% in the fourth quarter and further operating losses.