Bed Bath & Beyond has announced that they will be winding down operations amidst a bankruptcy filing and closing all locations. The company has been struggling for several years and it seemed to be only a matter of time before this decision was reached. The company will not be closing all of their locations immediately and there is no word on when or in what manner they will begin the closings. They will begin liquidating inventory with final sales this week. The company will be seeking a buyer for some or all of their businesses, meaning that many of their stores could remain open if a sale happens soon enough. The company secured a $240 million loan to fund their operations, yet it is unclear how much time this will buy them.

Bed Bath & Beyond stores were seeped in excess. Every section of the store was packed with merchandise that included everything their name suggested. The sheer volume of their stores drew in customers and their iconic coupons kept them coming back. Despite their unique charms, the company failed to keep up with their competition over the years. Big box stores like Walmart and Target innovated and were willing to completely redesign stores to fit consumers. Amazon became a behemoth that essentially offered more merchandise without the need to operate a retail location.

The retailer realized their failing strategy back in 2019 when they hired Mark Tritton as CEO. Tritton was behind the private label resurgence at Target and the company hoped he could do the same and more for them. Bed Bath & Beyond didn’t have the same success and the pandemic striking the following year only worsened their problems. The company lacked a standout online storefront and the focus on their overstuffed stores backfired during lockdown. Tritton was fired last year and is currently suing the company over unpaid severance.

The retail space has advanced rapidly over the last few years and Bed Bath & Beyond’s failure to innovate has cost them. Having a strong online marketplace and using physical presence to highlight curated items has become the current benchmark. The shuttering of such a large company could be a wake-up call to others who have resisted innovation. It is unclear if the brand will continue on with a limited store count or as an online only retailer; however, they will never be the same.