“There is good interest for Bed Bath & Beyond stores that are closing given desirable locations” and an average size of around 30,000 square feet, retail analysts from Telsey Advisory Group said in a note to clients. The company's store closings will create opportunities for other chains to replace Bed Bath & Beyond. Plus, the majority of its stores are in the suburbs of mid-size and large cities and are under 50,000 square feet, all of which are attractive qualities in retail as brands trend toward smaller spaces to save on rent, labor and other overhead.Ī closed Bed Bath & Beyond store this year in Larkspur, California. The company has stores in all 50 states, with the most in population-dense areas in California, Texas, New Jersey and Florida. So Bed Bath & Beyond has a lot to offer prospective tenants. Store space is incredibly scarce at the moment, and that’s an ongoing trend: Total new commercial retail real estate construction reached a new low in 2022 for the third consecutive year, according to CBRE.Īnd for existing spaces, the retail space vacancy rate fell to 4.9% at the end of 2022 - the lowest level since CBRE began tracking the market in 2005. “So many of our most productive locations were formerly Circuit City or Toys ‘R’ Us or Sports Authority.”Ĭommercial construction and vacancies at record lows “For us, the biggest source of new store locations comes from other retailers closing stores,” Burlington CEO Michael O’Sullivan said on an analyst call in February. Particularly in a tight commercial real estate market, bad news for one brand means opportunity for another. It will not take long for retailers to occupy those spaces.” “A lot of great real estate is going to come available into a market where there’s been no vacancies.
“E-commerce scared a lot of people off from building retail,” said Brandon Isner, the head of retail research at CBRE, a commercial real estate firm. Anthony Behar/Sipa USA/APīed Bath & Beyond was a retail pioneer. The Canadian division, which operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, is insolvent, the filing posted on the website of consultancy Alvarez & Marsal showed.People walk past the entrance to a Bed Bath & Beyond retail store along Sixth Avenue in New York, NY, September 4, 2022. In February, according to a court filing, Bed Bath & Beyond's Canadian operations were going out of business. The company was able to raise $360 million from the complex deal helping it pay loan defaults and interest payments for senior notes.īut Bed Bath terminated the deal in late March and announced plans to sell $300 million worth of its shares, warning it might have to file for bankruptcy if it could not secure the funds. In February, the embattled retailer had planned to raise around $1 billion through the offering of preferred stock and warrants to avoid bankruptcy. In January, the company raised doubts about its ability to continue as a going concern just months after it announced more than $500 million in new financing, as well as job cuts and 150 store closures. The company added that its 360 Bed Bath & Beyond and 120 buybuy BABY stores and websites will remain open and continue serving customers as it starts efforts to effect the closure of its retail locations. While the retailer has begun a liquidation sale, it intends to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets, according to the statement.Ī person exits a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. The company said that it has received a commitment of approximately $240 million in debtor-in-possession financing from Sixth Street Specialty Lending Inc, according to a statement. The Union, New Jersey-based retailer filed for bankruptcy in a District of New Jersey court, listing both its estimated assets and liabilities in the range of $1 billion and $10 billion, according to a court filing. Last year's moves to abandon that strategy, and to bring in more national brands that shoppers recognize, had not shown signs of working, with the company reporting a loss of about $393 million after sales plunged 33% for the quarter ending Nov. The home goods retailer, which shot to popularity in the 1990s as a go-to shopping destination for couples making wedding registries and planning for new babies, has seen demand drop off in recent years as its merchandising strategy to sell more store-branded products flopped. April 23 - Bed Bath & Beyond Inc (BBBY.O) filed for Chapter 11 bankruptcy protection on Sunday after the home goods retailer failed to secure funds to stay afloat, and has begun a liquidation sale.
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