It was always a long shot but it looks like the odds are even longer on Bed Bath & Beyond escaping a total liquidation of its physical retail base.
Earlier this week the bankruptcy court gave approval for the remaining 500 Bed Bath and BuyBuy Baby locations to be put up for bids, according to A&G Real Estate Partners, the agent engaged to do so. While it’s still possible a buyer may emerge before the court finalizes the liquidation early next month, so far there have been no public statements – or even informed speculation much less unconfirmed reports – of any interested parties. A&G did however hold out that as a possibility in its statement.
“There are many desirable, strategically located stores with both high visibility and traffic,” A&G co-founder Emilio Amendola said in announcing the news. “Moreover, these leases represent an incredible opportunity for an array of operators nationwide, due in part to the tremendous diversity of size ranges in play.” Prime retail real estate has become in great demand post-pandemic as consumers return to in-person shopping.
A&G said the Bed Bath & Beyond stores are in 48 states and the District of Columbia, ranging in size from 18,000 to 92,000 square feet. The Baby stores, located in 37 states, range from 14,000 to 63,000 square feet, it said. It added that it expects landlords of the spaces might be prime bidders as they will then be able to turn around and rent out the space at higher rates in what has become a seller’s market for retail real estate. There are also several warehouse, distribution centers and a data facility that will be available to potential bidders.
Speculation has centered on off-price chains, deep discount grocery operators like Aldi and Lidl and drug chains as the most likely to be interested in taking these retail spaces.
Even as the company’s physical presence seems likely to disappear – as recently as four years ago it had some 1,500 stores under a variety of nameplates – the Bed Bath and Baby names are expected to live on, probably as online-only brands under the aegis of third party operators. None have come forward so far but would be expected to appear when the bankruptcy court gets around to divvying up the remains next month.
And once again, no coupons allowed.
WarrensReport 