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According to a court filing on Friday, Bed Bath & Beyond Inc BBBY is going to shut its operations in Canada.
The company has filed its Canadian division for protection under the Companies Creditors Arrangement Act, Canada’s rough equivalent of chapter 11 bankruptcy, reports Reuters.
Bed Bath & Beyond operates 54 Bed Bath & Beyond stores and 11 Buybuy Baby stores in Canada. The company has 387 full-time employees and 1,038 part-time employees in the country.
As per the court filing, the Canadian business does not have the “capacity or ability to independently effect a recapitalization or restructuring of the Canadian operations without access to cash and the support” from the parent company and its lenders.
The court filing also said that as of Nov. 26, the Bed Bath & Beyond banner in Canada had total assets of about $427.4 million and total liabilities of approximately $342.8 million.
Also Read: Why Bed Bath & Beyond Shares Are Getting Hammered
The Canada business isn’t profitable and has generated net losses for the nine months that ended Nov. 26, the court filing adds.
Last week, the company raised about $225 million in an equity offering and said it might get another $800 million over the next 10 months.
Last year, in August, Bed Bath & Beyond announced plans to close approximately 150 “lower-producing” stores as part of a strategic business review.
Later, the domestic merchandise retailer said it would close an additional 87 stores and its entire Harmon chain of drugstores.
Next Read: Wedbush Maintains Underperform on Bed Bath & Beyond, Raises Price Target to $0.25
Photo: Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.