Embattled retail giant Bed Bath & Beyond has filed for Chapter 11 bankruptcy protection in the US.
The company says it will “implement an orderly winding down of its business,” including its Buy Buy Baby brand, and will close all 475 of its remaining stores by the end of June.
It added that it is looking for buyers for some or all of its assets.
The chain, which has struggled with financial problems for years, recently said it would cut jobs and close 150 stores.
Last month the company announced it was selling $300m (£241.1m) of its shares and warned it might have to file for bankruptcy if the funds weren’t secured.
The once-popular homeware destination is struggling to keep up with the rise of online shopping.
Chapter 11 protection defers a US company’s obligations to its creditors and gives it time to reorganize its debt or sell parts of the company.
In a filing Sunday with the U.S. Bankruptcy Court for the District of New Jersey, the retailer said, “The past twelve months have undoubtedly been the most difficult and turbulent in the long history of Bed Bath & Beyond.”
It added that despite “arduous, creative and extensive efforts to get the ship in order en route, Bed Bath & Beyond is simply unable to service its funded debt obligations while also delivering enough inventory to its business locations.” .
Notices on the Bed Bath & Beyond and Buy Buy Baby websites said the stores “remain open to serve you” without offering a timeline for when services would be shut down.
“Millions of clients have trusted us at the most important milestones in their lives – from attending college to getting married, settling into a new home and delivering a baby,” said Sue Gove, President and CEO of Bed Bath & Beyond, in an explanation.
The company also said it has secured $240 million in funding from Texas-based Sixth Street Specialty Lending to help with its liquidation process.
Bed Bath & Beyond was founded in 1971 as Bed ‘n Bath in reference to the narrow range of goods it originally sold. Over the years, the company has expanded its offerings from bedding to electrical appliances.
At its peak in the 2010s, Bed Bath & Beyond was the largest home furnishings retailer in the United States with more than 970 stores in all 50 states.
In recent years, however, it has struggled with dwindling profits as more and more customers opted to shop online.
Earlier this year, the company said it had secured more than $500 million in new financing, but added it was closing 150 stores and cutting jobs to transform the business.
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