Bed Bath & Beyond will close six stores
More retailers are under pressure as consumers pull back on their spending
Bed Bath & Beyond initially planned to shutter only two Colorado stores when it announced its latest round of closures last week.
But now that list includes six of its 19 locations in the state.
The home goods retailer recently defaulted on a loan to JP Morgan and missed a $25 million interest payment due Feb. 1. It had warned it faced a possible liquidation in bankruptcy court but this week arranged a $225 million stock offering, part of a larger capital infusion that could grow to $800 million down the road.
The retailer’s new backers appear to want more belt-tightening, and that is coming in the form of additional store closures, which will not be welcome news for malls around the state.
The initial closures announced at 16531 Washington St. in Thornton and 1605 Fall River Drive in Loveland will now include the loss of stores in Dillon, Grand Junction, Glenwood Springs and Northglenn.
Consumers are spending down the excess savings they built up during the pandemic, and real income gains aren’t keeping up with inflation. Retail sales have fallen in three of the past four months and the holiday season came in weaker than expected, with December proving to be an “ugly” month, according to a research note from the economics team at Wells Fargo.
Party City filed for bankruptcy protection in mid-january, leaving a question mark hanging over the fate of its 800 company and franchisee-owned stores, including 13 along the Front Range.
On Jan. 6, discount retailer Big Lots said it had closed four stores at 8125 Sheridan Blvd. in Arvada; 7475 E. Iliff Ave. in Denver; and 139 W. Hampden Ave. in Englewood and 126 W. Troutman Parkway in Fort Collins, leaving it with 14 locations in the state. Macy’s also announced last month it would close its store at the Foothills Mall, ending a 48year presence in Fort Collins, and TJ Maxx closed its store on the 16th Street Mall this year after a 25-year run in the heart of downtown.
Other well-known retailers who are struggling and may close stores in the months ahead include fabric vendor JOANN, Tuesday Morning, Dollar General, Mattress Firm, Rite Aid, The Gap and Kohl’s, according to a list compiled by JD Supra. Serta Simmons, a mattress manufacturer, filed for bankruptcy protection on Jan.
23. And Nordstrom, like Macy’s, is also thought to be weighing closures.
Even stalwarts such as Walmart aren’t immune from having to thin their ranks. Walmart announced this week it would close three stores in the Chicago suburbs, including a pickup- only prototype it launched in 2019 in Lincolnwood.
“We have no plans to close any stores in Colorado at this time,” said Lauren Willis, a Walmart spokesperson.