Is Buy Buy Baby out of business? Henrietta’s Buy Buy Baby will soon close its doors. This is stated on the webpage of their parent firm, Bed Bath & Beyond. This is just one of several buy-buy baby shops that will be closing across the nation. More than 100 Bed Bath & Beyond locations are also planned for closure.
Bed Bath & Beyond stated this in a public filing at the beginning of the year. It predicted a net loss of around $385.8 million for the three months ending November 26, 2022. The business has also declared that it has missed loan payments. Let us view it in detail in this article.
A valuable asset for Bed Bath & Beyond is Buy Buy Baby!
An American retail firm called Buy Buy Baby, Inc. sells apparel, strollers, and other accessories for newborns and young children. It has 133 locations in both Canada and the United States. Richard and Jeffrey Feinstein, sons of Bed Bath & Beyond co-founder Leonard Feinstein, started the business in 1996.
Bed Bath & Beyond bought this business for $67 million in 2007. At that time, it had eight stores. Babies “R” Us served as its main rival until Toys “R” Us, the parent company, filed for bankruptcy and discontinued its U.S. sites in 2018.
On February 10, 2023, it was disclosed that Bed Bath & Beyond, the firm’s parent, would shutter its Canadian operation. Also, they told the company to close all of its locations.
Is Buy Buy Baby Going Out of Business?
The answer to this question depends on where we live. Buybuy Baby and its parent firm, Bed Bath & Beyond, will not stop operations in the U.S. Sadly, Bed Bath & Beyond’s Canada section is closing its doors. All the shops across Canada, such as the 11 Buy Buy Baby stores and the 54 Bed Bath & Beyond stores, will permanently shut down.
A percentage of U.S. stores have been closed. Also, their inventories are being liquidated to make up for higher-than-anticipated losses in 2022. Bed Bath & Beyond and buybuy Baby will continue to open shops around the country.
We can check Bed Bath & Beyond’s list of retail stores with scheduled closures or closures already underway. This was to ensure that our nearby store had not been affected. One can find good deals during the clearance sale at a store closing in our neighborhood to complete our baby registry.
What happened to Buy Buy Baby?
Bed Bath & Beyond’s most valuable asset is Buy Buy Baby. It has grown increasingly uncertain as the company’s danger of bankruptcy grows. Sales at the chain, which offers baby products including car seats, strollers, and other gear, have recently fallen. But it regularly exceeds the Bed Bath & Beyond shops that bear the trademark, making it a healthy option for sale.
In a mid-January newspaper report, the private equity company Sycamore Partners expressed its desire to participate. It plans to buy Buy Baby and other Bed Bath & Beyond assets. This was part of a possible bankruptcy process. Bed Bath & Beyond stated it was “working with business consultants to assess all routes to reclaim market share as well as boost liquidity.”
Bed Bath & Beyond has had a challenging year. On January 5, the leadership warned that it was considering declaring bankruptcy. Since then, the business has received a tender offer warning from Nasdaq. It also revealed that it was closing more locations and recorded a poor third quarter. Bed Bath & Beyond announced on January 26 that it was out of funds and unable to repay its debts. Just a few days later, the business revealed that it had missed the interest payments due on February 1.
Selling Buybuy Baby can provide the business with a necessary cash injection. Victor Sahn is a lawyer in Greenspoon Marder’s bankruptcy and restructuring practice department. He believes that the chances of Bed Bath Beyond putting together this kind of sale before filing for bankruptcy are now low.
Also, Bed Bath Beyond will likely dispose of the infant segment while going bankrupt. It’s because no possible buyer has shown interest. In that case, Bed Bath Beyond would keep running Buy Baby stores while arranging a final agreement. He asserts that the newborn segment and its stock will go through liquidation if a transaction doesn’t occur.
A timeframe for buy-buy Baby’s shutdown is not yet known. But a Bed Bath & Beyond representative said in an email that “store closing promotions will start and extend in the coming weeks and months.” Court records state that without access to financial help, the company lacks the power or capacity to raise or restructure its Canadian business.