Bed Bath & Beyond plans to liquidate all inventory and go out of business

NEW YORK (CNN) — Bed Bath & Beyond, the store for seemingly everything in your home during the 1990s and 2000s, filed for bankruptcy on Sunday.

“Thank you to all of our loyal customers. We have made the difficult decision to begin winding down our operations,” a statement at the top of the company’s website said Sunday morning.

The company’s 360 Bed Bath & Beyond locations, along with its 120 buybuy BABY stores, will remain open for now, as will websites. The company secured a $240 million loan to help fund its operations during bankruptcy.

But store closing sales will begin Wednesday, and Bed Bath & Beyond will close some stores. Just how many – or what happens to its 14,000 employees –depends on what happens next.

A bankruptcy filing does not necessarily mean that a company is going out of business. Many major US companies have filed for bankruptcy, using it to shed debt and other costs they could no longer afford. But even if Bed Bath and Beyond does emerge from bankruptcy, its future is not guaranteed.

The company said it would seek to sell some or all of its business. If it’s able to find a buyer, Bed Bath & Beyond will halt store closings. But if a buyer doesn’t come forward, Bed Bath & Beyond will likely be liquidated entirely and go out of business.

It’s also possible the company could emerge from bankruptcy as an online-only retailer, said Neil Saunders, an analyst at GlobalData Retail.

“Ultimately, if it emerges from bankruptcy at all, Bed Bath & Beyond will be a shadow of its former self,” he said.

Bed Bath & Beyond had been a crown jewel of the era of so-called “category killers” — chains that dominated a category of retail, such as Toys “R” Us, Circuit City and Sports Authority. Those companies, too, ultimately filed for bankruptcy as shoppers turned away from huge specialty stores in favor of online options like Amazon.

Bed Bath & Beyond became known for pots and pans, towels and bedding stacked from the floor to the ceiling at its cavernous stores — and for its ubiquitous 20%-off coupons. The blue-and-white coupons became something of a pop culture symbol, and millions of Americans wound up stashing them away in their cars, closets and basements.

The company said customers will have Sunday, Monday and Tuesday to use their remaining 20%-off coupons. The company will stop accepting them Wednesday. Instead, Bed Bath & Beyond expects to offer “deep discounts” on its products as part of its going-out-of-business sales.

The retailer attracted a broad range of customers by selling name brands at cut-rate prices. Brands coveted a spot on Bed Bath & Beyond’s shelves, knowing it would lead to big sales. Plus, the open-store layout encouraged impulse buying: Shoppers would come in to buy new dishes and walk out with pillows, towels and other items.

Stores were a fixture for shoppers around the winter holidays and during the back-to-school and college seasons, and Bed Bath & Beyond also had a strong baby and wedding registry business.

But the New Jersey-based company has been slow to respond to shopping changes and struggled to entice customers who had moved on to Amazon, Target and other chains.

In its bankruptcy filing, Bed Bath & Beyond said it had $5.2 billion in debt and assets of just $4.4 billion. It secured $240 million in financing Sunday to stay afloat just long enough to close its stores and wind down its operations.

The company encouraged shoppers to seek out its discounted merchandise later this week. Items purchased before Wednesday can be returned until May 24, but all sales after Wednesday will be final. The store will stop accepting gift cards on May 8.