Bed Bath & Beyond closing in Clarksville along with over 250 stores nationwide
Bed Bath & Beyond, a household retailer, is continuing its nationwide effort to reduce its brick-and-mortar operations by half. The company missed an interest payment on its bonds on February 1st, which led to a notice of default from the banks. In response, the company announced the closure of 87 locations, including all its remaining harmon health and beauty stores and five Buybuy Baby stores.
The company has now revealed that it will be closing an additional 150 Bed Bath & Beyond stores, one of which is located in Clarksville, Tennessee. Despite the closures, the company still intends to have approximately 360 Bed Bath & Beyond stores and approximately 120 Buybuy Baby stores in key markets to serve its customers in an optimal manner.
Bed Bath & Beyond has also announced a complex stock offering that will provide an immediate injection of $225 million in funds and a pledge for $800 million in the future to pay down its current debt load. The company intends to use the net proceeds from the stock offering, along with a $100 million draw from its amended and upsized FILO Facility, to repay outstanding revolving loans.
With these measures, the company has managed to avoid bankruptcy for the time being. The company has stated that it is conducting a comprehensive, store-by-store analysis of its portfolio to serve its customers well into the future.
The latest closures, which include locations in 13 new states, Indiana, Louisiana, Maine, Michigan, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, Nevada, Oklahoma, Oregon and Wisconsin, are part of the company’s efforts to adapt to evolving shopping preferences.
