Bed Bath & Beyond Files for Bankruptcy
Bed Bath & Beyond said on Sunday that it filed for Chapter 11 bankruptcy.
A statement released on Sunday found that the company’s 360 stores, and its 120 BABY stores, will remain open as the company goes through restructuring.
Sue Gove, the president and CEO of Bed Bath & Beyond, said the company would work “diligently to maximize value for the benefit of all stakeholders.”
She continued, “We deeply appreciate our associates, customers, partners, and the communities we serve, and we remain steadfastly determined to serve them throughout this process.”
In its bankruptcy filing, the company said its liabilities exceed $1 billion and that it had secured financing of $240 million from Sixth Street Specialty Lending to continue its operations during the bankruptcy proceedings.
The company revealed that it had about $5.2 billion in debt and its assets total roughly $4.2 billion, with about $153 million in cash or cash-equivalents.
Bed Bath & Beyond is not the only company to feel the pain of President Joe Biden’s economy.
Ride-sharing service Lyft announced that it would cut at least 1,200 more jobs. This is Lyft’s second round of layoffs, which could impact 30 percent or more of its 4,000-plus employees.
Breitbart News’s Alana Mastrangelo explained:
As Breitbart News reported late last year, food delivery service DoorDash laid off 1,250 employees in what the CEO said was part of a broader cost-cutting initiative. Around the same time, Amazon reduced its workforce by approximately 10,000 employees, the largest downsizing in the firm’s history.
In March, Facebook parent Meta Platforms Inc. also said it was cutting 10,000 jobs this year. The move came after the social media giant fired 11,000 employees late last year.
Although layoffs continue to mount, Breitbart News Economics Editor John Carney explained in the Breitbart Business Digest that we may still have to wait for a recession. He wrote, “This could wind up challenging the near-universal view that the Fed has only one rate cut left before it pauses for a couple of months and then starts cutting in the back half of the year.”
He added, “From the perspective of April, the Fed still has a lot more work to do before it can safely rest in its fight to restore price stability.”