Bed Bath & Beyond Canada (BBB Canada) will wind down its operations, according to a filing with the Ontario Superior Court of Justice. The filing noted that Bed Bath & Beyond’s U.S. business has “determined that it is no longer in a position to provide financial and operational support to BBB Canada,” and it will therefore close all 54 Bed Bath & Beyond stores and 11 BuyBuy Baby stores in the country. The business has failed to turn a profit for an unspecified period, and the filing noted that it saw “significant net losses” in the nine months ending Nov. 26, 2022.
The decision was made because “BBB Canada does not have capacity or ability to independently effect a recapitalization or restructuring of the Canadian operations,” according to the filing. “The wind-down process must be commenced as soon as possible to maximize recoveries and limit costs by ensuring that BBB Canada can exit from all retail stores as soon as practicable and avoid further rent, employee costs, critical supplier/service provider fees, bank fees and other ongoing amounts.”
Approximately 387 full-time employees and 1,038 part-time employees will be affected by the closures. Additionally, the retailer will shut down a 5,200-square-foot warehouse in Surrey, British Columbia with “very limited, if any, inventory” and a corporate office in Ontario.
Bed Bath & Beyond as a whole is still hoping to recover from its current struggles with help from the $1 billion in capital it secured from investors. The retailer is reportedly in talks for a sale that may have stalled, and it has told investors that it is exploring all potential avenues for its future.