Bed Bath & Beyond, which is closing all of its stores in Colorado, leaves yet another void in the Durango Mall.
The retailer, which was anchored at the north end of the mall, advertised it is closing last weekend.
Going out of business signs say products will be marked 10 to 40% off the lowest ticketed price.
It will be the second business to leave the mall in the last five months. Sears Hometown Store went under in late January. It comes as little surprise as Bed Bath & Beyond Inc. has been struggling financially. CNN reported that the company had $5.5 billion in debt and filed for Chapter 11 bankruptcy in April.
In January, Bed Bath and Beyond reported a net loss of $393 million and a 33% loss in sales during its third fiscal quarter ending in November, according to the company’s reports.
The Bed Bath & Beyond public relations department declined to comment about the Durango store closing.
An April 23 news release said Sixth Street Specialty Lending has agreed to lend Bed Bath & Beyond $240 million in debtor-in-possession financing so the company can have the cash flow necessary to support operations through the bankruptcy process.
“Millions of customers have trusted us through the most important milestones in their lives – from going to college to getting married, settling into a new home to having a baby,” said Bed Bath & Beyond Inc. CEO Sue Gove in a news release. “Our teams have worked with incredible purpose to support and strengthen our beloved banners, Bed Bath & Beyond and buybuy BABY.”
No time frame was given for when the store will officially close its doors.
Much like JCPenney and Sears Hometown Stores Inc. before it, Bed, Bath and Beyond is going through a liquidation process and intends to use Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets.
Losing Bed, Bath and Beyond is a costly hit to the Durango Mall’s tenant occupancy. Excluding Bed Bath and Beyond, the mall has only eight active stores with 14 empty storefronts.
The Durango Herald attempted to contact the mall Monday but did not receive a response.
“I think it's kind of a reflection of what's been occurring,” said Durango Chamber of Commerce CEO Jack Llewellyn. “People since COVID are relying more and more on online purchases and less on going to actual brick and mortar locations.”
During the first year of the pandemic, e-commerce sales skyrocketed by 43% across the nation, according to the U.S. Census Bureau. Comscore, a global media measurement and analytics company, reported that the nation’s e-commerce sales surpassed $1 trillion for the first time in history in 2022.
Llewellyn added that the closure of Bed Bath & Beyond is a national closing and that losing the tenant was out of ownership’s control.
The mall did add a major retailer in September 2022 with Old Navy, which could bring more attention to the mall.
“It provides more selection, which from what I have heard keeps individuals from going online, to Farmington, Denver or Albuquerque for their shopping needs,” he said.
He said there are many people who like to shop in person because they can physically see the product before it is purchased.
A consumer research survey from the National Retail Federation in 2022 showed that 57% of consumers say they still shop in stores for apparel and footwear because they want to see, touch, or try products before they buy them.