Cash strapped Bed Bath & Beyond begins liquidation sale, plans to shut stores

Bed Bath & Beyond filed for bankruptcy Sunday, cementing a years-long decline that saw losses surpass a billion dollars annually as the US retailer struggled to adapt to an uncertain economy and the dominance of online shopping.

The home goods chain filed voluntary petitions for relief under Chapter 11 at the United States Bankruptcy Court for the District of New Jersey, a court filing showed.

The New Jersey-based retailer, seller of everything from shower curtains and soaps to vacuum cleaners and duvet covers, for years was a fixture on the Fortune 500 list of biggest American companies.

It said in a statement it had sought bankruptcy protection "to implement an orderly wind down of its businesses while conducting a limited marketing process to solicit interest in one or more sales of some or all of its assets."

Bed Bath & Beyond shares dove in January as it warned of "substantial doubt about the Company's ability to continue as a going concern," a sign that was widely interpreted to mean it could file for bankruptcy.

The company said at the time that it expected a loss of $386 million in the just-finished quarter.

Bed Bath & Beyond, founded in 1971, grew to operate stores in all 50 US states plus Puerto Rico, Canada and Mexico.

As sales plummeted last year, the company struggled to maintain supply in its stores, and share prices tumbled.