Bed Bath & Beyond Canada has filed for bankruptcy in Ontario court, saying it plans to winddown its business and liquidate its inventory.
The Canadian arm of U.S.-based Bed Bath & Beyond (BBBY) has been granted creditor protection by the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act.
Bed Bath & Beyond Canada said in the court filing that it is insolvent and cannot restructure its operations without support from its American parent company.
The Canadian unit posted a net loss of $99.5 million for the nine months ended November 26, 2022. Bed Bath & Beyond Canada's assets are valued at $480.1 million, while its liabilities total $429.7 million.
U.S. parent company Bed Bath & Beyond has shutdown hundreds of stores across the U.S. and warned that it too may need to file for bankruptcy protection from its creditors as it is unable to pay back its loans.
Bed Bath & Beyond recently raised $1 billion U.S. through offerings of preferred stock and warrants in the U.S., which it said will be used to pay down debt.
The parent company has said that it can no longer provide financial and operational support to Bed Bath & Beyond Canada, according to Ontario court filings.
Bed Bath & Beyond’s stock has collapsed 85% over the past 12 months and currently trades at $2.35 U.S. per share.
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