Bed Bath & Beyond bought back its own stock for 19 years — then ran out of cash

Bed Bath & Beyond was a US homewares retailer that at its peak operated roughly 1,500 stores across North America. Beginning in 2004, the company embarked on a sustained programme of share buybacks, returning billions of dollars to shareholders rather than reinvesting in the business. The buybacks continued for nearly two decades, through the rise of Amazon and the shift of homewares retail online.

By the time the board recognised the e-commerce threat, the capital needed to build a competitive digital operation had already been distributed to shareholders. New CEOs arrived in rapid succession — three between 2019 and 2022 — each attempting a turnaround without the funds to execute it. The company cut its product assortment, alienating vendors who then began withholding shipments when payments slowed.

In January 2023, banks cut the company's credit line. By March, Bed Bath & Beyond warned it would likely file for bankruptcy unless it could sell $300 million in stock. On 23 April 2023, the company and 73 affiliated entities filed for Chapter 11 in the District of New Jersey, listing $5.2 billion in debt. The last stores closed on 30 July 2023.

The brand name survives: Overstock.com purchased it at auction and renamed itself Bed Bath & Beyond. The original company, its 1,500-store fleet and its buyback programme do not.