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Tag: Chapter 11 Bankruptcy

  • More Americans are filing for bankruptcy. Here’s what’s behind the surge.

    New data shows more Americans are filing for bankruptcy, the latest indication that price pressures and an uneven economy are leaving some households strapped for cash.

    Total consumer bankruptcy filings jumped 12% from 478,752 in 2024 to 533,949 in 2025, according to Epiq AACER, a platform that provides U.S. bankruptcy filing data. Epiq, which tracks Chapter 7, Chapter 11 and Chapter 13 filings, relies on data provided through the U.S. Courts’ PACER system, an electronic database that houses federal court records.

    The surge in filings comes as American consumers — and businesses — face a slate of economic pressures, ranging from sticky inflation to elevated borrowing costs, experts told CBS News. 

    John Rao, a senior attorney with the National Consumer Law Center, said Americans typically hold off on filing for bankruptcy as long as they can, meaning the conditions that led them to file for bankruptcy may not necessarily be tied to current economic issues.

    “There is often a lag before economic conditions translate to higher bankruptcies,” he said.

    Still, he said the rising cost of medical insurance, mounting credit card debt and the restart of student loan repayments are serving as some of the major catalysts for bankruptcies. Inflation has also made it tougher for Americans to cover expenses while paying down their debt, he added.

    “There comes a point where the mounting bills, the increasing balances on credit cards, all those things just weigh people down so much,” Rao said.

    A December CBS News poll found most Americans are struggling to afford basic living costs in the U.S., including health care, food and housing. 

    A bankruptcy filing can provide consumers with a financial reset, stopping collection calls and wiping out some or all of their debt. But the relief comes with trade-offs: Bankruptcy can severely damage a credit score, delay the ability to buy a home and make it tougher to qualify for loans in the future.

    Commercial filings drift higher

    Commercial bankruptcies are also on the rise, with filings up 5% from 2024 to 2025, according to Epiq AACER’s data. In 2025, consumers lost a number of national and regional retailers — including Forever 21 and Joann Fabrics — that failed to stay afloat even after seeking bankruptcy protection.

    Total commercial bankruptcy filings by year (Line chart)

    Chapter 11 bankruptcies, which allow companies to restructure their finances, were up just 1% from 2024 to 2025, driven by higher interest rates in 2023 and 2024 along with inflation, according to Christopher Ward, the co-chair of bankruptcy and restructuring at Polsinelli Law Firm.

    Among the most notable recent filings is Saks Global, which filed for Chapter 11 on Wednesday. The parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman said it has secured financing that will allow it to keep stores open as the bankruptcy proceeds.

    Pre-pandemic normalization

    Experts emphasized that the increase in commercial and consumer bankruptcies represents a return to pre-pandemic norms. 

    Bankruptcies dipped during COVID as an injection of government funding helped prop up cash-strapped businesses and American households. Forbearance plans also gave some mortgage payers and car owners more financial breathing room, said Michael Hunter, vice president of Epiq AACER.

    However, once those temporary relief measures faded, bankruptcy filings drifted higher, with data showing an upward trend since 2022.

    “We’re just slowly coming back to pre-COVID levels,” Hunter said. “Is it a huge event? No. Is it a big increase from what we’ve experienced over the past five years? Yes.”

    While the overall number of bankruptcies is still below their pre-COVID levels, they could start to accelerate, Rao told CBS News.

    “There’s a good chance that filings will even be higher through this year and even into next year,” he said.

    Edited by

    Aimee Picchi

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  • Luxury retailer Saks Global enters bankruptcy to restructure

    NEW YORK CITY, New York: After years of expansion fueled by debt and rising pressure from cautious luxury shoppers, Saks Global has sought bankruptcy protection as it moves to overhaul its business and balance sheet.

    The New York-based private company, which owns Saks Fifth Avenue and Neiman Marcus, said on January 14 that it had filed for Chapter 11 bankruptcy in the Southern District of Texas. The filing comes as the retailer prepares to reposition itself in an increasingly competitive upscale market, backed by about US$1.75 billion in financing commitments.

    Leadership changes have accompanied the restructuring effort. Chief executive Marc Metrick stepped down earlier this month as the company grappled with debt linked to its $2.65 billion acquisition of Neiman Marcus in 2024. He was succeeded by executive chairman Richard Baker, who quit both roles earlier this week and was replaced as chief executive by Geoffroy van Raemdonck.

    The company is also facing intensifying competition while working to reduce its heavy debt load, even as some customers push back against steep price increases in the luxury sector.

    In a statement, the company said it was “evaluating its operational footprint to invest resources where it has the greatest long-term potential.”

    Saks said it does not expect operations to be disrupted during the bankruptcy process and will continue to honor customer programs while paying suppliers and employees.

    The retailer said it has secured financing commitments totaling $1.5 billion from some of its creditors, along with an additional $240 million in “incremental liquidity” from its lenders.

    Hudson’s Bay Co., the Canadian owner of Saks Fifth Avenue, split off the luxury retailer’s e-commerce business, Saks.com, in 2021. Three years later, after acquiring Neiman Marcus, Saks Fifth Avenue changed its name to Saks Global.

    The restructuring unfolds against a weakening global luxury backdrop. Worldwide sales of luxury goods are expected to contract for a second consecutive year in 2026 as consumers worry that the global economy will curb spending, according to a study released in November by Bain & Co.

    Hudson’s Bay, Canada’s oldest company, moved in March 2025 to begin liquidating all but six of its stores.

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  • These national and regional retailers went out of business in 2025

    The past year saw a wave of bankruptcies, with a number of major national brands permanently closing their doors amid uncertain economic growth and ongoing challenges among brick-and-mortar businesses. 

    More than 8,100 stores closed across the U.S. in 2025, up roughly 12% from 2024, according to retail industry analytics firm Coresight Research. Here are some of the larger retailers that closed their stores this year.

    Bargain Hunt

    Bargain Hunt, a Nashville-based discount retailer, said in February that it would shutter all of its 92 stores in 10 states after declaring bankruptcy. 

    Forever21

    Fast-fashion retailer Forever 21 wound down its U.S. operations in the face of stiff competition from overseas retailers such as Shein and Temu.

    Forever 21 blamed “competition from foreign fast-fashion companies, which have been able to take advantage of the de minimis exemption to undercut our brand on pricing and margin.”

    Joann Fabrics

    Hudson, Ohio-based Joann Fabrics in February shuttered all of its stores across the U.S. after more than 80 years in the business of selling fabrics and craft supplies. It had declared bankruptcy for a second time in January after experiencing flagging sales. 

    The retail chain failed to find a buyer that would keep its stores open, forcing it to close its stores amid “significant and lasting challenges in the retail environment,” Joann said in a statement at the time. 

    Liberated Brands

    Liberated Brands said in February that it would close all of its 122 stores. The Costa Mesa, Calif.-based retailer focused on sports and outdoor apparel, with its brands including Beachworks, Becker Surfboards, Billabong, Boardriders, Honolua Surf, Quiksilver, ROXY, RVCA, Spyder and Volcom.

    Party City

    Party City closed hundreds of company-owned and franchise store outlets this year after declaring bankruptcy in late 2024. A handful of independent franchise stores remain open in the U.S. The party supplies seller also continues to operate as an online retailer after its brand was purchased in early 2025 by retailer Ad Populum.  

    Rite Aid 

    After filing for bankruptcy twice in two years, national pharmacy chain Rite Aid in October announced the closure of all of its locations.

    Rite Aid, founded in 1962, faced sluggish sales and high costs linked to opioid-related lawsuits. The Justice Department filed a complaint against the company in 2023, accusing it of violating the False Claims Act and the Controlled Substances Act by filling unlawful prescriptions for oxycodone and fentanyl, CBS News reported.

    What’s left of its website now directs former customers to request old pharmacy records and helps them find a new provider. 

    Sonder

    Former Airbnb rival Sonder, a short-term rental company, abruptly ceased operating in November, leaving guests stranded and, in some cases, locked out of their accommodations. 

    Sonder went out of business after Marriott ended its licensing deal with the hospitality company.

    “Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system,” interim Sonder CEO Janice Sears said in a statement last month.

    Edited by

    Alain Sherter

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  • JCPenney reveals an unexpected update about the future of 119 stores

    Once a mall staple and a go-to department store for generations of families since 1902, JCPenney has endured turbulent years marked by bankruptcy, mass store closures, and restructuring efforts. Now, as the retailer continues its long road to recovery, another major setback has emerged.

    In July 2025, JCPenney entered into a $947 million all-cash deal with private equity firm Onyx Partners Ltd., agreeing to transfer the ownership of 119 store locations. The deal was executed through Copper Property CTL Pass-Through Trust, the entity created during JCPenney’s bankruptcy to hold and dispose of its real estate assets.

    Copper Property disclosed that the amendment became effective on July 23 and was non-refundable, thereby guaranteeing the transaction, according to the trust’s press release. Once completed, the trust planned to distribute the proceeds to investors.

    Under the terms of the deal, the properties were subject to a triple-net master lease, under which JCPenney remains responsible for all operating costs, including property taxes, insurance, and maintenance. The lease also included limited termination rights for individual locations in specific circumstances, such as property damage or condemnation proceedings.

    Despite these arrangements, the trust cautioned that the transaction was contingent on meeting several closing conditions and could not be guaranteed. At the time, all 119 JCPenney stores remained open and operational.

    The deal was initially expected to close on September 8, with the trust obligated to sell all properties by January 2026. However, repeated delays ultimately led to an unexpected outcome.

    Months later, Copper Property revealed that the nearly $1 billion agreement had failed to close. In a Form 8-K filing dated December 22, the trust issued a notice to Onyx Partners confirming that the agreement would be terminated if the buyer did not complete the transaction by December 26, 2025.

    The filing does not specify what would happen to the 119 stores, and JCPenney has yet to issue a public statement addressing the failed deal or the next steps.

    JCPenney’s nearly $1 billion property deal falls through, leaving 119 locations in limbo. Shutterstock

    This attempted sale dates back to JCPenney’s Chapter 11 bankruptcy filing in May 2020. While the company cited the COVID-19 pandemic as a key factor, it had not been profitable for nearly a decade prior.

    As part of its restructuring, CPenney secured $450 million in debtor-in-possession financing to continue operating while reorganizing its business.

    The retailer was eventually acquired by Simon Property Group (SPG) and Brookfield Asset Management (BAM) for $1.75 billion, transferring ownership of its retail and operating assets.

    Copper Property was created during this process to assume ownership of 160 retail properties and six warehouses. Managed by an affiliate of Hilco Real Estate LLC., the trust is responsible for owning, leasing, and selling those assets.

    At the time of its bankruptcy filing, JCPenney closed over 200 stores nationwide. Earlier this year, the retailer confirmed plans to shutter seven additional locations.

    Newmark previously owned 121 JCPenney store properties across 35 states. In early 2025, it sold two of those properties, one in Florida and one in Pennsylvania, to the Simon Property Group and Brookfield Asset Management.

    • Texas: 21

    • California: 19

    • Florida: 6

    • Michigan: 6

    • Illinois: 5

    • Ohio: 4

    • Arizona: 4

    • New Jersey: 4

    • Connecticut: 3

    • Nevada: 3

    • New York: 3

    • Oklahoma: 3

    • Pennsylvania: 3

    • Washington: 3

    • Arkansas: 2

    • Colorado: 2

    • Kentucky: 2

    • Maryland: 2

    • Missouri: 2

    • New Mexico: 2

    • Puerto Rico: 2

    • Tennessee: 2

    • Virginia: 2

    • Georgia: 1

    • Iowa: 1

    • Idaho: 1

    • Indiana: 1

    • Kansas: 1

    • Louisiana: 1

    • Massachusetts: 1

    • Minnesota: 1

    • Mississippi: 1

    • North Carolina: 1

    • New Hampshire: 1

    • Oregon: 1

    • Wyoming: 1

    Analysts attribute JCPenney’s decline to a major rebranding effort in 2011 under the then-newly appointed CEO, Ron Johnson, who introduced a new logo and redesigned stores to promote a more modern department store concept.

    At the same time, JCPenney abandoned its long-standing promotional pricing strategy, replacing frequent sales and coupons with everyday low pricing. It also reduced its private-label offerings to focus on national brands.

    The change failed to resonate with its core customers and instead created a perception of higher prices.

    “For the JCPenney shopper, the brand experience wasn’t just about the final price paid,” said Marketing Expert Roy Harmon. “It was about the psychological thrill of the hunt. Customers loved the sense of ‘winning’ by stacking coupons and catching a great sale. By removing the discounts, Johnson removed a key source of perceived value and delight. Customers, confused and alienated by the new approach, fled in droves.”

    More Store Closures:

    As foot traffic and sales declined and competitors got ahead, JCPenney’s debt continued to mount.

    “The JCPenney case illustrates the complex dynamics of branding in the modern retail environment,” said Attorney Schuyler Reidel. “While aspirations for revitalization are commendable, they must be grounded in a deep understanding of customer expectations and market realities to achieve successful outcomes.”

    The COVID-19 pandemic further added to JCPenney’s challenges, disrupting its supply chain and forcing temporary store closures during an already uncertain time.

    Traditional brick-and-mortar retail continues to shrink. Rising operating costs and the rapid growth of e-commerce have reshaped consumer behavior, leaving empty mall storefronts and shuttered stand-alone locations across the country.

    With 84.3% of Americans shopping online, U.S. e-commerce spending reached $1.34 trillion in 2024 and is projected to surpass $2.5 trillion in 2030, according to Capital One Shopping.

    In 2024, U.S. online sales accounted for 22.3% of global e-commerce spending, up nearly 1.5% from the year prior, and are expected to reach $1.47 trillion in 2025.

    Retailers announced 67% more store closures in 2025 than the previous year, according to CoreSight Research.

    Related: Why your favorite retail store is going out of business

    This story was originally published by TheStreet on Dec 27, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.

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  • At Home Is Closing 29 Stores in September – See List

    I’m a big fan of At Home. I’ve raved about their outdoor furniture in my recent list of the best online stores for patio pieces, and I’ve shared how their budget-friendly finds can help turn a backyard into a cozy retreat.

    So, it’s tough to see this update: At Home has filed for Chapter 11 bankruptcy and will be shuttering 29 “underperforming” stores by September 30, 2025.

    Why At Home Is Closing Stores

    According to court documents, the retailer cited rising interest rates, “persistent inflation,” and unsustainable customs costs tied to tariffs as major reasons for the bankruptcy filing.

    While At Home has remained a go-to spot for affordable décor, these broader economic pressures have hit them hard, similar to what we’ve seen with other retailers like Joann Fabrics, Big Lots, and Party City.

    As part of the bankruptcy process, ownership of At Home is shifting to a group of hedge funds and investment firms based in New York and San Francisco.

    Which Stores Are Closing?

    Here are the 29 locations that will close by the end of September:

    All closures are expected by September 30, 2025.

    What This Means for Shoppers

    For those of us who love hunting down quirky accent chairs or oversized planters, this is a reminder to keep an eye on which locations are still standing. If your local store is on the closure list, you may want to swing by before the end of September—liquidation sales often mean steep discounts.

    Online shopping with At Home remains an option, too, which is how I’ve scored some of my favorite patio pieces. And if your nearest At Home is closing and you’re looking for fresh inspiration, I’ve rounded up 27+ online furniture and decor stores that deliver stylish furniture and décor without breaking the bank. Just be mindful that not every trendy option online lives up to the hype. I learned that firsthand in my honest review of Ruggable rugs.

    Yahoo CreatorLindsey PulsCreator of Have Clothes, Will Travel

    Lindsey writes about travel, style, and quirky internet trends—sharing shopping tips, product reviews, and offbeat guides on Yahoo, MSN, the AP Wire, and her blog Have Clothes, Will Travel.

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  • TGI Fridays files for bankruptcy, as sit-down chain restaurants face broad challenges

    TGI Fridays files for bankruptcy, as sit-down chain restaurants face broad challenges

    TGI Fridays closing 36 “underperforming” restaurants across U.S.


    TGI Fridays closing 36 “underperforming” restaurants across U.S.

    00:24

    Restaurant chain TGI Fridays filed for bankruptcy protection Saturday, saying it is looking for ways to “ensure the long-term viability” of the casual dining brand after closing many of its branches this year.

    The Dallas-based company filed for Chapter 11 bankruptcy protection in a Texas federal court.

    TGI Fridays Executive Chairman Rohit Manocha in a statement said the “primary driver of our financial challenges resulted from COVID-19 and our capital structure.”

    Sit-down chain restaurants have more broadly faced challenges in recent years as diners choose to get food delivered or visit upscale fast food chains like Chipotle and Shake Shack.

    A U.S. bankruptcy judge in September approved a reorganization plan for seafood chain Red Lobster after years of mounting losses and dwindling customers.

    Founded in 1965, the popularity of TGI Fridays peaked in 2008 with 601 restaurants in the U.S. and a $2 billion business, according to Kevin Schimpf, director of industry research at Technomic. Its sales in the U.S. were $728 million in 2023, down 15% from the prior year, according to Technomic.

    It now counts 163 restaurants in the U.S., down from 269 last year. It closed 36 in January and dozens more in the past week.

    TGI Fridays Inc. said it only owns and operates 39 restaurants in the U.S., which is just a fraction of the 461 TGI Friday-branded restaurants around the world. A separate entity, TGI Fridays Franchisor, owns the intellectual property and has franchised the brand to 56 independent owners in 41 countries. Those remain open.

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  • Buca di Beppo declares bankruptcy. Here’s what restaurants are closing.

    Buca di Beppo declares bankruptcy. Here’s what restaurants are closing.


    8/6: CBS Morning News

    20:39

    The Italian restaurant chain Buca di Beppo filed for bankruptcy protection after customer visits to the family-style dining establishment declined in recent years. 

    Buca di Beppo, which experienced “limited customer demand” during the pandemic, never fully recovered to the same level of revenue and sales after lockdown restrictions were lifted, the restaurant chain said Monday in bankruptcy court documents. The privately owned restaurant’s revenue for the first five months of 2024 fell 10% to $74.8 million compared with a year earlier, court documents show. 

    Buca di Beppo is entering Chapter 11 bankruptcy saddled with more than $10 million in debt. About $1.36 million of that debt is for gift cards that customers have not yet redeemed, the restaurant said. 

    U.S. restaurants are struggling to maintain their sales as inflation-weary customers pull back on spending at fast food chains and sit-down establishments alike. At the same time, restaurants are facing higher food prices and labor costs, adding to their financial pressures.   

    Buca joins Red Lobster, Sticky’s Finger Joint and Tijuana Flats on the list of casual restaurants that have filed for bankruptcy protection this year. 

    “While the restaurant industry has faced significant challenges, this move is the best next step for our brand,” Buca president Rich Saultz said in a statement. “By restructuring with the continued support of our lenders, we are paving the way toward a reinvigorated future.” 

    As part of its bankruptcy process, Buca said it began closing underperforming locations this year, including shuttering a dozen last month. Below are its 18 closed locations:

    • 7111 West Ray Road in Chandler, Arizona
    • 1249 Howe Ave. in Sacramento, California
    • 615 Flatiron Marketplace Driver in Broomfield, Colorado
    • 1351 South Orlando Avenue in Maitland, Florida
    • 1030 Auahi Street in Honolulu, Hawaii
    • 6045 East 86th Street in Indianapolis, Indiana
    • 112 Kentlands Blvd in Gaithersburg, Maryland
    • 38888 Six Mile Road in Livonia, Michigan
    • 12575 Hall Road in Utica, Michigan
    • 44 Wolf Road in Atlantic City, New Jersey
    • 1900 Pacific Avenue in Colonie, New York
    • 10915 Carolina Place Parkway in Pineville, North Carolina
    • 60 East Wilson Bridge in Worthington, Ohio
    • 3 East Station Square Drive in Pittsburgh, Pennsylvania
    • 6600 Robinson Centre Drive in Pittsburgh, Pennsylvania
    • 2745 Paper Mill Road in Wyomissing, Pennsylvania
    • 202 West 200 South in Salt Lake City, Utah
    • 935 East Fort Union Blvd in Midvale, Utah

    The restaurant is keeping open 44 locations and is working on opening one new restaurant, according to a Monday statement from the restaurant. Buca, which first opened in Minnesota in 1993, employs 3,340 workers, of which 266 are full-time. 

    Khristopher J. Brooks

    Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.

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  • Romance Writers of America falls into bankruptcy amid allegations of racism

    Romance Writers of America falls into bankruptcy amid allegations of racism

    The Romance Writers of America filed for bankruptcy protection this week following several years of infighting and allegations of racism that fractured the organization, causing many of its members to flee.

    The Texas-based trade association, which bills itself as the voice of romance writers, has lost roughly 80% of its members over the past five years because of the turmoil. Now down to just 2,000 members, it can’t cover the costs it committed to paying for its writers conferences in Texas and Pennsylvania, the group said in bankruptcy court documents filed on Wednesday in Houston.

    Mary Ann Jock, the group’s president and an author of seven published romance novels, said in a court filing that the troubles stemmed “predominantly due to disputes concerning diversity, equity and inclusion” issues between previous board members and others in the romance writing community.

    The organization, founded in 1980 to represent and promote writers in fiction’s top-selling genre, said it owes nearly $3 million to hotels where it planned to host the annual meetings. In the court filings, Jock noted how the organization held its 2024 conference in Austin, Texas, and was working to pay off the contract owed to the local Marriott facility where the event was held. At the same time, the Marriott hotel in Philadelphia, where the organization was planning its 2025 conference, demanded a full payment of $1 million, Jock said. 

    The association was pushed into bankruptcy “in light of the Philadelphia Marriott’s demand for immediate payment and without a consensual resolution with the Marriott Conference Centers,” Jock said. 

    In court documents, the association listed between $100,000 and $500,000 in assets with between $1 million and $10 million in liabilities. 

    Relationships within the group started to fray in 2019, over the way it treated one of its authors, a Chinese American writer who it said violated the group’s code with negative online comments about other writers and their work. The association reversed its decision, but the uproar led to the resignation of its president and several board members. The organization at the time had about 10,000 members,

    Following allegations that it lacked diversity and was predominantly White, the organization called off its annual awards in 2020. Several publishers, including Harlequin, Avon Books and Berkeley Romance, then dropped out from the annual conference. The association later said it would present a new award in honor of Vivian Stephens, a pioneering black romance novelist and publisher.

    The next year, the association faced more anger and eventually withdrew an award for a novel widely criticized for its sympathetic portrait of a cavalry officer who participated in the slaughter of Lakota Indians at the Battle of Wounded Knee.

    — The Associated Press contributed to this report.

    Khristopher J. Brooks

    Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.

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  • Rite Aid is closing more than 150 stores. Here’s where they are.

    Rite Aid is closing more than 150 stores. Here’s where they are.

    Rite Aid files for bankruptcy


    Rite Aid files for bankruptcy

    00:21

    Rite Aid plans to shutter 154 stores nationwide as part of its recent bankruptcy filing, including about 40 locations in its home state of Pennsylvania.

    The pharmacy chain listed every location set for closure in bankruptcy court documents filed Tuesday, but didn’t disclose when each store would be shuttered. Rite Aid declared bankruptcy this week amid slumping sales and mounting opioid-related lawsuits. 

    The company said Tuesday it received $3.45 billion in new financing that will go toward keeping remaining stores open and keeping employees paid while its restructuring moves forward. The bankruptcy process will help Rite Aid emerge “as a stronger company, well-positioned for long-term success,” CEO Jeffrey Stein said. 

    About 30 stores slated for closure are located in California, according to the filing. Other Rite Aid locations that will be closed are in states including Maryland, Michigan, New York and Washington.

    Rite Aid employs 45,000 people, of which more than 6,100 are pharmacists.

    This is a developing story and will be updated. 

    Khristopher J. Brooks

    Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.

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  • Overstock CEO wants to distance company from

    Overstock CEO wants to distance company from

    As Overstock.com rechristens itself as Bed Bath & Beyond in a bid to strengthen sales, executives at the company want to distance the new brand from its namesake’s failures, CEO Jonathan Johnson said in an interview with CBS MoneyWatch. 

    After purchasing Bed Bath & Beyond’s domain and other assets at a bankruptcy auction in June, Overstock plans to relaunch the U.S. version its website under Bed Bath & Beyond’s banner in “late July or early August,” according to Johnson. The “revamped” website will debut alongside an updated mobile app and loyalty program. 

    “We didn’t want any confusion about what’s going to be our lovely site versus the garage-sale store that’s going on at [Bed Bath & Beyond] stores right now,” Johnson said. “I don’t want that taint on us.” 

    The company’s executives began eying an acquisition of Bed Bath & Beyond’s brand three years ago, citing similarities between the businesses’ customer bases. “We loved the brand, hated the business model,” Johnson said. “Like all the [other] brick-and-mortars, their digital game was there, but it was not A-plus.”

    Overstock’s leaders were also entertaining the idea of a rebrand amid concerns that their own business model was “weighed down by a brand that doesn’t say who we are,” Johnson said. 


    Bed Bath & Beyond going out of business after bankruptcy filing

    01:53

    Not a liquidator 

    “We’re a home furnishing and furniture company, and it sounds like we’re a liquidator, and that’s been a headwind for consumers and…for [our] suppliers,” he added.

    The acquisition could boost Overstock’s sagging sales. The company’s stock has risen roughly 45% since it won Bed Bath & Beyond’s assets on June 22. 

    Overstock’s purchase does not include Bed Bath & Beyond’s remaining brick-and-mortar locations. Those stores will close this summer, a development Johnson said he welcomes. 

    “There’s stuff on the floor [and there are] like hotel bins of things,” he said. “There [are] not even great deals.”

    The new Bed Bath & Beyond will also be less reliant on coupons, Johnson said, a change for many of the chain’s loyal customers.

    “Our coupons don’t need to be as big because our base prices are already sharper than Bed Bath & Beyond’s were,” said Johnson, who promised good bargains on the revamped website.

    Beyond wedding registries 

    The company’s executives also plan to revive the college and wedding registries that once helped Bed Bath & Beyond attract a loyal following.

    “We’re self-aware enough to know that one is going to put on their wedding invitation, ‘registered at Overstock,’” Johnson quipped. “But we’ll build the wedding registry so that people can be registered at Bed Bath and Beyond.”

    Bed Bath & Beyond filed for bankruptcy in April after years of sagging sales.  

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  • Overstock.com to rebrand as Bed Bath & Beyond after purchasing its assets

    Overstock.com to rebrand as Bed Bath & Beyond after purchasing its assets

    Overstock.com is rebranding as Bed Bath & Beyond after purchasing the big-box retailer’s intellectual property assets at a bankruptcy auction last week. 

    The e-commerce giant bid $21.5 million for Bed Bath & Beyond’s website and domain names, trademarks, patents, customer database and loyalty program data, among other assets under the company’s banner. Its marriage with the once-popular retailer will enable both companies to offer customers a wide selection of home furnishings, kitchen, bedding and bath-related products through a single online storefront, Overstock CEO Jonathan Johnson said. 


    Bed Bath & Beyond officially files for bankruptcy

    00:27

    “The combination of our winning asset-light business model and the high awareness and loyalty of the Bed Bath & Beyond brand will improve the customer experience and position the company for accelerated market share growth,” Johnson said in a statement. 

    The company is also “considering whether and how to reinstate expired Welcome Rewards points,” although it will not accept expired Bed Bath & Beyond coupons, Johnson told CBS MoneyWatch. Still, he promised good bargains on the revamped website.

    “I expect customers will find better deals on our site than they would have found previously at Bed Bath & Beyond with a coupon,” Johnson said.

    Overstock will re-launch Bed Bath & Beyond’s domains in both Canada and the U.S., with Bedbathandbeyond.ca going live within the next week, the company said. A “refreshed” version of the U.S. mobile app, loyalty program and website, bedbathandbeyond.com, will debut a few weeks later. 

    Overstock did not purchase Bed Bath & Beyond’s brick-and-mortar stores, which will close this summer as planned. 

    A bankruptcy court approved Overstock’s bid for Bed Bath & Beyond’s assets at a hearing earlier this week. 

    Bed Bath & Beyond filed for bankruptcy in April after struggling to adapt to a surge in online shopping. Before filing for bankruptcy, the company had experienced years of declining sales. 

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  • Launched to great fanfare a few years ago, Lordstown Motors is already bankrupt

    Launched to great fanfare a few years ago, Lordstown Motors is already bankrupt

    Commercial electric vehicle startup Lordstown Motors Corp. has filed for Chapter 11 bankruptcy protection nearly two months after it warned that it was in danger of failing.

    In early May electronics company Foxconn wavered on a $170 million investment in Lordstown. The Ohio company said in a regulatory filing at the time that it had received notice from Foxconn on April 21 that it was in breach of their investment agreement because it had received a delisting warning from Nasdaq two days earlier.

    Lordstown said at the time that given the uncertainties, there was substantial doubt it could continue as a going concern.

    Lordstown was in danger of being delisted from the Nasdaq because its share price closed below $1 on March 7 and continued to falter after that.

    Foxconn told Lordstown at the time that it may unwind their agreement if Lordstown did not resolve its listing issues. Lordstown said in May that it had notified Foxconn that, among other things, it believed the breach allegations were without merit and that the terms of the investment agreement didn’t allow Foxconn to end the deal following the initial closing.

    Lordstown said Tuesday that it was filing a lawsuit against technology company Hon Hai Technology Group and certain affiliates, including Foxconn. Lordstown said the lawsuit “details Foxconn’s fraud and willful and consistent failure to live up to its commercial and financial commitments to the company.” It claims Foxconn’s actions led to material damage to Lordstown and its future prospects.

    Lordstown said it’s also looking to sell its Endurance vehicle and related assets. The company said that restructuring under Chapter 11 will help with the sale process of Endurance and speed up the timeline for hearing its lawsuit against Foxconn.

    In November Lordstown had announced that it had received approval to ship the first batch of its first model, the Endurance pickup.

    The trucks were built in an old General Motors small-car assembly plant in Lordstown, Ohio, near Cleveland, that was purchased in 2021 by Taiwan’s Foxconn Technology Group, the world’s largest electronics maker.

    Lordstown said that it is entering Chapter 11 with significant cash on hand and is debt-free.

    The company’s stock plunged more than 65% before the market open.

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  • The Container Store will now accept Bed Bath & Beyond’s famous 20% off coupon — but act now

    The Container Store will now accept Bed Bath & Beyond’s famous 20% off coupon — but act now

    Bed Bath & Beyond closing all stores


    Bed Bath & Beyond going out of business after bankruptcy filing

    01:53

    Don’t throw away those now-expired Bed Bath & Beyond single-item coupons just yet. 

    The Container Store announced on Wednesday that for a limited time, it will be accepting Bed Bath & Beyond’s famous “20% off a single item coupon,” following the home goods chain’s announcement that it has filed for bankruptcy and will be shuttering its stores. 

    “Bring in a blue coupon to receive 20% off a single item and experience our vast array of NEW products for college,” the company wrote on Twitter, adding a winky face emoji to cheekily address their competitor’s downfall. 

    Bed Bath & Beyond announced on Monday that it had declared bankruptcy, chalking up many of its difficulties to a slow acclimation to the modern-day e-commerce model of purchasing.

    Tuesday was the last day that Bed Bath & Beyond accepted its iconic blue coupons, and has now initiated its closing sales as storefronts liquidate their inventory. The company plans to shut all of its 360 Bed Bath & Beyond and 120 Buy Buy Baby locations by the end of June.

    The Container Store has 97 locations nationwide, and all of them will be accepting the coupons through May 31.

    C Mandler


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    C Mandler is a social media producer and trending topics writer for CBS News, focusing on American politics and LGBTQ+ issues.

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  • Bed Bath & Beyond going out of business after bankruptcy filing

    Bed Bath & Beyond going out of business after bankruptcy filing

    Bed Bath & Beyond going out of business after bankruptcy filing – CBS News


    Watch CBS News



    Bed Bath & Beyond officially filed for bankruptcy protection, the company announced Sunday. The filing said that all brick-and-mortar stores, including 120 Buy Buy Baby locations, will close by the end of June. Roxana Saberi reports.

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  • SVB Financial, former parent of Silicon Valley Bank, files for bankruptcy

    SVB Financial, former parent of Silicon Valley Bank, files for bankruptcy

    Sheila Bair on banking sector turmoil


    Former FDIC chair Sheila Bair on turmoil in the banking sector

    06:15

    SVB Financial, the former parent of Silicon Valley Bank, said it filed for bankruptcy, a week after the tech-reliant bank was shut down by regulators following a run on the financial institution that drove it into insolvency.

    In a Friday statement, SVB Financial said it is no longer affiliated with Silicon Valley Bank or its private banking and wealth management unit, SVB Private, following its takeover by the Federal Deposit Insurance Corporation. Silicon Valley Bank isn’t included in the Chapter 11 filing, the company said.

    The bankruptcy filing also doesn’t include SVB Securities and SVB Capital’s funds as well as its general partner entities, the statement noted. The parent company said it is continuing to search for “strategic alternatives” for those divisions, which continue to operate and undertake business for customers. 

    “The Chapter 11 process will allow SVB Financial Group to preserve value as it evaluates strategic alternatives for its prized businesses and assets, especially SVB Capital and SVB Securities,” said William Kosturos, chief restructuring officer for SVB Financial Group, in the statement.


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  • FTX’s Sam Bankman-Fried: What to know about his arrest and the charges he faces

    FTX’s Sam Bankman-Fried: What to know about his arrest and the charges he faces

    In a moment of self-reflection after the collapse of his cryptocurrency exchange FTX Trading, Sam Bankman-Fried tweeted on December 9 that he considered himself a “model CEO” who nevertheless “made a lot of big mistakes this year.” 

    Regulators now allege that the former FTX CEO is far from a well-meaning corporate leader, instead claiming that he “willfully and knowingly” defrauded investors. Bankman-Fried was arrested on Monday in the Bahamas on federal charges filed in the U.S., which include multiple counts of wire fraud and conspiracy related to the collapse of FTX. 

    The rise and stunning fall of Bankman-Fried combines the get-rich-quick allure of cryptocurrencies with the breathless hype that formerly surrounded the 30-year-old MIT graduate, whom Fortune magazine once called possibly the  “next Warren Buffett.” And in wake of FTX’s bankruptcy, the entrepreneur has left investors reeling and FTX owing its creditors at least $3 billion.  

    “Everybody loved the idea of a politically progressive entrepreneur … who was going to change the world, all while making them gobs of money,” said Rep. Bill Huizenga, a Republican from Michigan, in a congressional hearing on Tuesday about the FTX collapse.

    Here’s what to know about the charges facing Bankman-Fried. 

    Why was Sam Bankman-Fried arrested? 

    Bankman-Fried was arrested in the Bahamas Monday based on federal charges that were unsealed Tuesday morning, which include eight counts of wire fraud, money laundering, violations of securities laws and other financial crimes. 

    The charges, which were filed by the U.S. attorney’s office for the Southern District of New York, allege that he knowingly defrauded customers by using their cryptocurrency assets to pay for debts and expenses from Alameda Research, FTX’s hedge fund. 

    The charges allege that the fraud started as early as 2019, or the year that FTX was founded. 

    Is Bankman-Fried facing other charges? 

    Yes, the U.S. Securities and Exchange Commission — the agency that regulates the financial markets — also filed charges against Bankman-Fried on Tuesday. 

    In that case, the agency is accusing Bankman-Fried of commingling FTX customers’ funds with Alameda to make undisclosed venture investments, expensive real estate purchases and big political donations.

    The Commodity Futures Trading Commission on Tuesday announced similar fraud charges against Bankman-Fried and FTX, alleging in a lawsuit that the company caused customers to lose $8 billion. 

    How much money did FTX lose? 

    John Ray III, who stepped in as FTX CEO after Bankman-Fried’s resignation on Nov. 11 after a long career that included overseeing the Enron bankruptcy, said in a House hearing on Tuesday that about $7 billion was lost in the collapse. Ray alleged that Bankman-Fried and others at FTX misused customer funds, contributing to the losses.

    “It’s really just the unlimited ability of those in control positions to borrow customer funds or take customer funds and then deploy them for their own use,” Ray said in the hearing. “That use involved margin trading, which is inherently risky.”

    He claimed, “This is really old-fashioned embezzlement — it’s not sophisticated at all.”

    Bankman-Fried had been expected to testify at the hearing, but he was removed from the witness list following his arrest.

    What did FTX tell customers it was doing?

    FTX’s customers used the exchange to buy, store and trade hundreds of different cryptocurrencies, including bitcoin, ether, solana, litecoin and dogecoin. At one point, $840 million worth of crypto assets were exchanged on its platform each day, according to CoinMarketCap. 

    FTX gained national attention with its expensive Super Bowl ads this year featuring quarterback Tom Brady and comedian Larry David. In the Larry David ad, when the comedian is told that FTX is a “safe and easy way to get into crypto,” he responds, “Eh, I don’t think so — and I’m never wrong about this stuff.”

    FTX portrayed itself as being able to help people interested in crypto safely navigate the complexity of what is a notoriously risky asset class. But the company had very few internal controls to protect customer assets, with investor money transferred to Alameda and customer funds co-mingled into “one pot of crypto,” Ray testified on Tuesday. 

    What led to FTX’s collapse?

    Ray and regulators are examining the internal workings of FTX to get to the bottom of the failure, but the company unraveled in early November after finding itself billions of dollars in debt due to speculative investments, including in the company’s own digital coin, that turned sour and a series of other miscalculations.

    Bankman-Fried has said he mistakenly believed FTX had enough cash on hand to pay 24 times the amount of money users typically withdraw in a day. In actuality, the firm had a much thinner capital cushion, with only enough cash to pay 0.8 times that amount.

    When customers sought to withdraw their money amid fears about the company’s solvency, there was “a run on the bank,” Ray said on Tuesday.

    Ray highlighted other issues with FTX, such as its misuse of customer funds and what he alleged was Bankman-Fried’s decision to make investments without properly valuing the assets. 

    “By definition I don’t trust a single piece of paper in this organization,” Ray said on Tuesday. 

    What happens now?

    The U.S. is expected to ask authorities in the Bahamas to extradite Bankman-Fried, which experts said is likely within the scope of a 1931 treaty between the two countries.

    Because of that existing legal framework, “This would be a moment where one could strike while the iron is hot,” Michael Parker, head of anti-money laundering and sanctions practice at law firm Ferrari & Associates, told CBS News. “If Mr. Bankman-Fried, for instance, went to another jurisdiction, it could be more difficult, and so the Bahamas may have been seen as a friendlier jurisdiction from which jurisdiction could take place.”


    Sam Bankman-Fried facing likely extradition to the U.S. after arrest in the Bahamas

    05:06

    In pursuing the case against Bankman-Fried, Parker said prosecutors will have to show that he knowingly committed the alleged crimes outlined in their indictment beyond a reasonable doubt.

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