BBB to shut Canadian stores
TORONTO – As part of its strategy to stave off bankruptcy and liquidation in the United States, Bed Bath & Beyond will exit the Canadian market over the coming weeks after seeking protection under the Companies Creditors Arrangement Act (CCAA) for its 65 stores north of the border.
The Ontario Superior Court was told in the Bed Bath & Beyond Canada (BBB Canada) insolvency filing it lacks the ability to recapitalize and restructure without its Union, New Jersey-based parent company and its lenders.
“The Bed Bath & Beyond Group, including BBB Canada has been in financial difficulty for the past several years, reporting significant net losses since 2018,” the filing says, noting Bed Bath & Beyond operates 54 Bed Bath & Beyond locations and 11 buybuy Baby stores in Canada, which will now be closed.
In fact, the BBB Canada web site offers nothing other than a thank you to its customers while inviting them to visit their nearest store to shop its final clearance sale.
The filing also noted the parent company did retain the investment banking firm of Lazard & Frères to find a buyer or financing solution for the Canadian division, adding “multiple outreaches to third parties have not resulted in an executable transaction.”
BBB Canada reported Canadian assets of $427 million and total liabilities of $342 million. The parent company’s newly appointed chief financial officer told the court BBB Canada hasn’t been profitable in several years. Sales for its latest fiscal year were $553.6 million, up slightly from the previous year’s $542.7 million. It also reported negative EBITDA (earnings before interest, taxes, depreciation and amortization) $28.9 million and $25.1 million respectively.
For the third quarter of its current fiscal year, which ended November 26, 2022, BBB Canada has a net loss of $87.6 million with a negative EBITDA of $81.8 million.
For the past several years, BBB Canada has been ranked as one of the largest home furnishings store chains in Canada as well as one of this country’s largest retailers. In its report on the Top 100 Retailers in Canada for 2020, the Centre for the Study of Commercial Activities (CSCA) at what is now called Toronto Metropolitan University, ranked it at number 57 on its list of retail conglomerates and number 82 on its list of retail chains.
Alvarez & Marsal Canada, a management consulting firm based here, has been named the court appointed monitor.