Bed Bath & Beyond Files For Bankruptcy, Closing Sales Coming To Rhode Island Stores

MIDDLETOWN, RI — Rhode Island's two Bed Bath & Beyond stores will begin winding down operations this week with clearance sales — and will stop accepting the chain's famous 20 percent off coupons.

The New Jersey-based company announced Sunday it would file for Chapter 11 bankruptcy in that state. A company spokesperson said its 360 Bed Bath & Beyond and 120 Buy Buy Baby stores and websites will remain open and continue serving customers as it "begins its efforts to effectuate the closure of its retail locations."

Closing sales were set to start Wednesday, at which point coupons will no longer be accepted. Rewards, gift cards, merchandise credits and certain returns will be accepted through various points in May.

The two remaining Rhode Island locations include:

• 288 East Main Road, Middletown
• 1500 Bald Hill Road, Suite B, Warwick.

Despite its plans for liquidation, the company intends to use the bankruptcy proceedings for the sale of some or all assets, filing motions to market Bed Bath & Beyond and Buy Buy Baby for auction.

"In the event of a successful sale, the Company will pivot away from any store closings needed to implement a transaction," the news release said. "The Company believes this dual-path process will best maximize value."

The retailer said it secured a commitment of roughly $240 million in financing from Sixth Street Specialty Lending Inc. to allow it to keep operating during the bankruptcy process.

The filing comes as the economy is weakening and shoppers are tightening their purse strings. The company announced in August it would close about 150 of its namesake stores and slash its workforce by 20 percent.

Bed Bath & Beyond warned Jan. 5 that it was considering various options including filing for bankruptcy and said that there was "substantial doubt" that it could stay in business.

In late March, it noted that preliminary results showed anywhere from a 40 percent to 50 percent decline in sales at stores opened at least a year for the quarter that ended Feb. 25.

For more information about the bankruptcy filing, visit restructuring.ra.kroll.com/bbby.

The Associated Press contributed to this story.