Bed Bath & Beyond is moving forward with the closure of its Harmon beauty products chain as the cash-strapped retail store company failed to find a buyer in the bankruptcy. The beauty product chain is being entirely shut down as the company hopes to downsize its expenses following massive debts.
As of February 2022, the company had more than 50 Harmon stores operating in nearly six states, which are to be shut down in the coming days. Along with the beauty products chain, the retail store company has also announced the closure of around 100 Bed Bath & Beyond banner stores and around five Buy Buy Baby locations, taking the total shutdown numbers past the mark of 150.
With the debt-ridden company continuously downsizing its business, more than 300 Bed Bath & Beyond banner stores, beauty product stores, and baby products stores, along with others, have already been shut down. During a recent regulatory filing, Bed Bath & Beyond had given a warning to all concerned parties that it may seek bankruptcy protection in the near future.
A Spokeswoman from Bed Bath & Beyond, Julie Strider, told Yahoo Finance about the closure of the stores, saying:
“As we consider all paths and strategic alternatives, we continue to work with our advisors and implement actions to manage our business as efficiently as possible.”
She further added:
“We will update all stakeholders on our plans as they develop and finalize.”
What does the closure of Harmon stores mean for customers
The closure of Harmon stores in the six states is not a “see you again” but rather a “goodbye.” This is because the beauty products brand is being entirely shut down by Bed Bath & Beyond in an attempt to conserve cash in what could seem like the retail store company’s final hours.
It’s not just about the Harmon stores anymore. Many of the Bed Bath & Beyond stores are meeting the same fate, while others may see the same future in the coming months unless things change for the debt-ridden retailer. Rumors of the retailer going into bankruptcy started making rounds in the market around the end of 2022 when the retailer had stacked an amount of more than $1 billion in debt and losses.
In early 2021, the stocks of Bed Bath & Beyond were priced at a significant high with $27.23 a share, but they eventually started losing those gains over time. As the business continued to follow a downward trend for the retailer, debts and losses kept stacking up. A recent regulatory filing also revealed that Bed Bath & Beyond had defaulted on its loans and was unable to muster up the required funds to repay its debt.
One cannot be too sure of what is in store for Bed Bath & Beyond, considering all the uncertainties regarding its financial conditions. However, since it is already too late for Harmon stores, customers should probably start looking for alternatives to their beauty product requirements.