Bed Bath and Beyond is closing 87 more stores. See the list

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Bed Bath & Beyond is closing another 87 stores as struggling retailer Barrel heads toward bankruptcy.

These closures are in addition to the 150 closures Bed Bath & Beyond announced last August. Included in the new list are 5 BuyByBaby locations and all 49 remaining Harmon Face Value stores that sell cosmetics, as well as many of the retailer’s flagship brand stores across the country.

“As we continue to consider several avenues with our advisors, we are taking actions to manage our business as efficiently as possible,” a Bed Bath & Beyond spokesperson told CNN. “This store fleet reduction extends the company’s ongoing closing program.”

A spokeswoman for the company also confirmed Wednesday night that it had defaulted on the bond payment on February 1, and that it had entered a one-month grace period. Debtors often have a 30-day grace period to make payments before entering default.

“We remain committed to updating and finalizing all stakeholders on our plans,” the spokesperson said.

The spokesperson could not confirm the Bed Bath & Beyond outstanding amount. However, the Wall Street Journal reported that Bed Bath & Beyond “failed to pay more than $28 million on three tranches of approximately $1.2 billion in notes due on February.”

Established in 1971, Bed Bath & Beyond became a staple for affordable home decor, kitchenware, and college dorm room furniture. The retailer is known for its ubiquitous 20% off blue coupons, and cavernous stores with merchandise piled high to the ceiling. Bed Bath grew its corporate footprint aggressively, reaching 1,552 stores in 2017.

But it has struggled to transition to online shopping and shut down big chains like Walmart and Target. The retailer began making smaller trims in 2018 and, in the year before the pandemic, began closing hundreds of stores, primarily its Bed, Bath & Beyond operations, and getting rid of some of its weaker brands, such as its Christmas Tree Shops.

As of last February, the company had 953 stores left, and it has since announced plans to close more than 200 additional stores.

The closure not only reduced the number of employees and salary expenses, but also reduced the rent it paid. The company’s total store square footage is expected to decline by 36% over the four fiscal years ending in February 2022.

But some troubled retailers have shrugged off long-term problems by single-handedly closing stores. Closures not only reduce costs, but also reduce sales. Still, for a cash-starved company like Bed, Bath & Beyond, liquidating inventory can help raise the cash it needs to help fund operations through restructuring.

Last week, the company warned in a regulatory filing that it had received a notice of default from its lender JPMorgan Chase. The company said that “at this time, the company does not have sufficient resources to repay the amounts under the credit facilities and this requires the company to consider all strategic options including restructuring its debt under the US Bankruptcy Code.”

Bed Bath & Beyond defaulted on or around January 13, according to a Securities and Exchange Commission filing. It may be forced to file for Chapter 11 bankruptcy reorganization due to financial woes.

These are the locations where Bed Bath & Beyond plans to close in the coming weeks:

– CNN’s Chris Isidore contributed to this report