Bed Bath & Beyond’s Canadian operations are being put out of business, according to court filings on Friday.
The Canadian division that operates 54 Bed Bath & Beyond stores and 11 Bye Bye Baby stores has filed for bankruptcy, according to documents posted on the consulting firm’s website. Alvarez & Marsal showedAlvarez & Marsal has been appointed as business overseer in a Canadian lawsuit.
According to the application, the Canadian business does not have the “ability or ability to independently recapitalize or reorganize the Canadian business without access to cash and assistance” from the parent company and its lenders.
As of January 31, the company employs approximately 387 full-time and 1,038 part-time employees in connection with its retail operations across Canada, according to the filing.
According to Alvarez & Marsal, Bed Bath & Beyond Canada Ltd. was given its first order of creditor protection by the Ontario Superior Court on Friday under the Company’s Creditors Arrangement Act.
Bed Bath & Beyond Canada posted a net loss of $99.5 million in the nine months ending November 26, 2022, documents show.
As of November 26, Bed Bath & Beyond Canada’s assets were valued at approximately $480.1 million and total liabilities were approximately $429.7 million, according to the documents.
Buybu BABY Canada closes 11 stores
Adjusted earnings have been negative for the last three fiscal years, and the retail giant’s Canadian unit has led to a significantly negative adjusted margin for its parent company, the documents said.
U.S. parent company Bedbath & Beyond has closed a number of stores across the country and warned last month that it may have to file for bankruptcy protection after failing to repay loans.
The company recently said it would raise about $1 billion through the issuance of preferred stock and warrants, which it would use to pay down debt.
The parent company has determined that it can no longer provide financial and operational support to its Canadian division, according to the documents.
Buybu BABY Canada had assets of $52.7 million and liabilities of approximately $86.9 million.
