BUYBUY Baby has confirmed it will close all of its remaining physical store locations by the end of 2024.
The shocking development for the big-box retailer comes after it staged a strong comeback only a year earlier.
BuyBuy Baby is getting rid of its remaining physical stores[/caption]
Closing signs were spotted outside locations on Friday[/caption]
Now, it will be “transforming into a digital-first brand,” per a recent update to the FAQ page on its website.
The brand said it would instead be “focusing all our energy on providing an exceptional online shopping experience.”
BuyBuy Baby noted that it was after listening to feedback from partners and customers that it made the move to strictly e-commerce.
It also emphasized that the decision was not made “lightly” and understood it would be “disappointing news” for some.
Going out-of-business sales started on Friday morning, with signs and banners seen outside store locations.
BuyBuy Baby noted discounts of up to 30% off for baby furniture, toys, clothes, car seats, strollers, and more on its store locator page.
Only 10 are still operational across Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, and Virginia.
The retailer’s move to e-commerce is similar to the future of its bankrupt former parent company, Bed Bath & Beyond.
FUTURE SAVED
Bed Bath & Beyond made its Chapter 11 filing in April 2023, citing around $5.2 billion in debt.
As a result, 115 of BuyBuy Baby’s locations closed for good in the following months, per NJBIZ.
It was saved in June of the same year by baby product manufacturer Dream on Me for $15.5 million.
Dream on Me also bought the leases for 11 BuyBuy Baby stores and re-launched them in the fall of 2023, per Retail Dive.
With the axing of the remaining stores starting this month, BuyBuy Baby said it would put itself in a better spot in 2025 and beyond.
“By resetting now, we are positioning ourselves for long-term growth and success,” it told the publication.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
“We’re excited about this new chapter and confident that our renewed focus will create more value for our customers, partners, and team members.”
MAKING MOVES
Other children’s retailers are also making significant moves this fall.
Toys R Us has been staging a comeback of its own over the past year, for example.
The brand filed for bankruptcy in 2017 after $5 billion in debt struggles and was later acquired by WHP Global.
In November 2023, WHP Global opened an 11,000-square-foot Toys R Us flagship store at the Mall of America in Minnesota and confirmed plans for at least 24 flagships in total.
Earlier this month, Toys R Us also opened its first store in partnership with the Navy Exchange Service Command (NEXCOM).
Plans for several other openings on bases nationwide to offer products to military families are planned for 2025.
