Home goods retail giant Bed Bath & Beyond filed for Chapter 11 bankruptcy protection. The retailer has also started a liquidation sale.
Last year Bed Bath & Beyond reported losses of approximately $393 million after sales plunged 33 per cent for the quarter ending November 26, according to a Reuters report.
The Chaper 11 filing states the reported assets of $1 billion to $10 billion as well as liabilities of $1 billion to $10 billion.
There are 360 stores across the US and Canada and 129 buybuy BABY retail outlets, all of which will currently remain open.
A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a “reorganization” bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganisation is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.