Bed Bath & Beyond is closing all of its Canadian stores and winding down operations across the country.
According to a court filing shared by consultancy firm Alvarez & Marsal on February 10, the retail chain is insolvent. The Canadian division is "not profitable on a standalone basis," the documents note.
The Bed Bath & Beyond Group operates 54 stores across Canada as well as 11 buybuy BABY stores. Inventory, which is already at "historic lows," will be liquidated and the retail stores vacated. Twenty-seven stores are located in Ontario, 17 in Alberta, and 11 in British Columbia.
While the parent company considered closing only poorly performing stores and continuing its Canadian operations on a smaller scale, it ultimately concluded that the "economics were not justifiable."
"The Bed Bath & Beyond Group has been in financial difficulty for the past several years, suffering significant net losses since 2018," the documents read. "Over this period, BBB Canada itself has seen dramatic declines in revenues."
For the nine month period ending on November 26, 2022, Bed Bath & Beyond Canada reported a net loss of $87.6M, while buybuy BABY reported a net loss of $11.9M. Together, the companies' total assets were approximately $480.1M, while their total liabilities were around $429.7M.
Just days prior to its Canadian insolvency, the documents show that the Bed Bath & Beyond Group was able to avoid bankruptcy in the United States by raising $225M through an equity offering.
As it works to restructure its business in the US, the company has determined that it is no longer able to provide financial and operational support to its Canadian division.