Bed bath and goodbye! The rise and chaotic fall of the groundbreaking superstore loved by celebrities

From housewives to celebrities, popular no-frills homewares supermarket Bed Bath & Beyond served millions of loyal shoppers until its five-decade dominance ended abruptly in bankruptcy this week.

The store started in 1971 as the niche homewares store “Bed N Bath” and went on to become one of the best-known big-box brands in the country.

But despite thriving during the pandemic, as homeowners threw huge sums into renovation projects, the retail giant was forced to file for Chapter 11 bankruptcy on Sunday.

The company’s chaotic demise led its CFO to commit suicide in September amid accusations of a “pump and dump” scheme, while the disastrous launch of the company’s post-pandemic expansion ruined a once-promising bottom line.

But before its dramatic collapse, the supermarket had a solid reputation for celebrity sightings, with A-listers like Timothee Chalamet, Zendaya and even Japan’s former Princess Mako being spotted browsing the aisles.

The supermarket’s filing for bankruptcy has put more than 30,000 jobs at risk and all 360 stores nationwide are eventually set to close.

The brand had already undergone a significant downsizing in a failed attempt at survival, having once owned more than 1,500 stores across the United States.

The company, which initially specialized in bed linen and bath products in its early years, was renamed Bed Bath & Beyond in 1987 to reflect its ever-growing stock.

It pioneered the concept of “superstores,” opening its first sprawling, large-area store in 1985, which analysts dubbed a “category killer.”

With a wide range of products in the “housewares” section, the design would be followed closely by other iconic retailers, including Costco and Walmart.

And during its heyday, the renowned superstore became a VIP favorite, with numerous A-listers spotted posing with homewares.

From Cynthia Nixon, who lives up to the Big Apple’s “Sex and the City” shopping spree cliché, to Timothee Chalamet, who makes stunning customers with a surprise appearance, countless celebs have been photographed at the retailer over the years.

After Princess Mako of Japan gave up her royal title to marry a ‘commoner’ in 2021, she was even spotted at one of the brand’s Manhattan locations.

Exclusive DailyMail.com photos showed Mako at the home furnishings store, where she spent about an hour and a half shopping for bath towels, hangers, organizational baskets, some paper towels and other items for her conjugal home in Hell’s Kitchen.

The company has been successful in the pandemic and reported a six percent increase in sales in October 2020 compared to the previous year.

And with celebs stuck in their mansions just like regular folks across the country, many have been snapped in-store during this time.

When the pandemic first broke in March 2020, Spider-Man actress Zendaya was spotted stocking up on canned goods and essentials at a Los Angeles store.

The ‘Euphoria’ star wore purple latex gloves as she shopped at Bed Bath & Beyond with her brother Austin.

According to a Twitter user, Zendaya’s love for the homewares supplier has also led to her dating actor Timothee Chamalet on another visit to the store.

Modern Family actress Ariel Winter has also been spotted in the retailer.

She showed off her slim figure while shopping in Studio City in June 2019, and was holding several overstuffed Bed Bath & Beyond bags as she exited the LA location.

Another celebrity photographed outside the same Studio City store as Winter was actress Hillary Duff, who took a trip to the homewares giant in October 2019.

Duff was flanked by her children Luca and Banks Violet as the famous family shopped for Halloween items and homeware.

And in December of the next year, another West Coast A-lister joined the growing roster of famous Bed Bath & Beyond fans.

Venessa Hudgens was spotted alongside her “BFF” GG Magree as the duo shared the cash while on a shopping spree in Los Angeles.

News of the legendary brand’s demise came after several tumultuous years, which included the tragic death of its CFO in September.

Gustavo Arnal, 52, fell from his apartment window in New York’s Jenga Tower days after the company announced it was closing stores and laying off employees as it implemented cost-cutting measures.

The incident came as Arnal was being sued along with the company over allegations of a “pump and dump” scheme in which he allegedly artificially inflated the company’s stock price.

The deal’s collapse comes after a relatively successful period during the Covid-19 pandemic, in which trapped homeowners caused a surge in demand for Bed Bath & Beyond stock.

The company sought to launch a range of new products to capitalize on new demand in 2021, including a line of storage containers called Squared Away, a bath called Haven and new homeware under the Bee brand & Willow”. nickname.

But when retail was subsequently plagued by supply chain issues, the company’s bold plan suffered.

In its recent bankruptcy filings, the company listed its estimated assets and liabilities in the $1 billion to $10 billion range.

And with the new line of products struggling to sell, the company would lose millions in its inventory and trigger a long period of decline that has led to bankruptcy.

With low inventories, dwindling cash reserves and sharply declining sales, the retailer has been unable to pay its debt.

After its pandemic boom, the brand kicked off 2022 with a devastating earnings report that showed net sales fell 28% while net losses jumped over $75 million.

Through April, the company reported that it posted a net loss of $159 million, compared to a profit of $9 million a year earlier, according to Retail Dive.

After the ailing retailer defaulted on its line of credit with JPMorgan Chase in January, it announced it had received a commitment of approximately $240 million in self-owned financing from Sixth Street Specialty Lending Inc following its filing for bankruptcy.