Bed Bath & Beyond Goes Bankrupt Due to Losing Competitiveness with Online Stores

Jakarta, Armfalcon.com —

The retail giant in United States of America (US), Bed Bath & Beyondofficially filed for bankruptcy on Sunday (23/4), after losing competitiveness with online stores which have recently mushroomed.

“Thank you to all our loyal customers. We have made the difficult decision to stop our operations,” the company said through its official website, Sunday (23/4).

The company stated that 360 Bed Bath & Beyond outlets and 120 buybuy Baby stores are still open at this time.

The company at least got a loan of US$240 million or the equivalent of Rp.3.6 trillion which helped fund its operations during this bankruptcy.

The closing of shop sales itself is said to have started on Wednesday (26/4), along with the closing of several Bed Bath & Beyond outlets.

The fate of the company’s 14,000 employees is now unclear because it depends on the situation that will occur next.

Reported from CNNfiling for corporate bankruptcy does not necessarily mean that the company will go out of business.

Many large US companies have filed for bankruptcy, but are using the circumstances to pay off debts and other costs they can’t afford.

Bed Bath & Beyond has so far said it will seek to sell some or all of its business. If they can find buyers in these times, the company will stop closing stores.

Conversely, if there are no buyers, Bed Bath & Beyond will likely be completely liquidated and bankrupt.

GlobalData Retail analyst Neil Saunders said it was possible for the retail company to emerge as an online business.

Currently, Bed Bath & Beyond is unable to compete with online stores such as Amazon, as experienced by other companies that filed for bankruptcy, from Toys “R” Us, Circuit City, to Sports Authority.

Bed Bath & Beyond is a retail store known for its home appliance products. They attract customers by selling top brands at low prices.

[Gambas:Video CNN]

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