Hundreds of employees at Bed Bath & Beyond may soon lose their jobs when the firm closes its Canadian operations.
According to sources, the home goods retailer obtained an initial order for creditor protection from the Ontario Superior Court of Justice on Friday under the Companies’ Creditors Arrangement Act to enable a prompt wind-down of the operation and liquidation of inventory.
Insolvent and unable to restructure its operations without assistance from its American parent business, according to court records published on Alvarez & Marsal Canada Inc.’s website, according to a story published on City News.
There are around 387 full-time employees and 1,038 part-time employees working for the company’s Canadian business. According to Reuters, it runs 11 buybuy BABY locations and 54 Bed Bath & Beyond stores.
CEO Sue Gove announced the firm is cutting jobs “across our corporate, supply chain, and retail portfolio” in an email to staff members last month.
According to the filings, the business lost $99.5 million in total for the nine months that ended on November 26, 2022. At that time, Bed Bath & Beyond Canada’s total liabilities were estimated to be worth $429.7 million, while the company’s assets were estimated to be worth $480.1 million.
Bed Bath & Beyond said in August 2022 that it will liquidate approximately 150 of its “lowest generating” shops and lay off nearly 20% of its corporate and supply chain workers. The list of closed stores was published on the company’s website.
