On April 23, 2023, Bed Bath & Beyond filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of New Jersey. This filing includes Buy Buy Baby stores as well.

When a company files for bankruptcy, the bankruptcy courts decide if (and for how long) the store can accept gift cards. Outstanding gift cards are liabilities on a company’s balance sheet because the company owes the gift card holder the card’s value in merchandise. If another company buys the store assets to keep the physical stores running or convert the business to an e-commerce shop (like RadioShack.com, ToysRUs.com, etc.), the new owner will not likely honor outstanding gift cards.

New owners buy the assets–not the liabilities.

There is more to bankruptcy proceedings than that, but I am focusing on what consumers need to know about Bed Bath & Beyond gift cards (and Buy Buy Baby gift cards) now that the company has filed for bankruptcy.

The most important thing to do with a Bed Bath & Beyond gift card is use it immediately.

Below are the posted deadlines, but store closings in your area might come sooner. I just visited my local Bed Bath & Beyond and it is already in liquidation with signs that say “all sales final” and “coupons not accepted.”

As of this writing, here are the deadlines I found pertaining to Bed Bath & Beyond gift cards and Buy Buy Baby gift cards:
 

• Bed Bath & Beyond gift cards are usable until May 8, 2023.
• Welcome Rewards and in-store credit are good until May 15, 2023.
• Returns and exchanges must be made by May 24, 2023.
• Store closings in your area may impact these timelines.
   

Again, since local store timelines might be sooner, I would plan to use your Bed Bath & Beyond gift cards, loyalty points, in-store credit, and coupons as soon as possible.

In short: Don’t wait.

The most important thing to remember is that all sales are final. So buy products you will use, gift, or donate. With graduation, wedding season and summer events coming up, here are a few one-size-fits-all items still on my local store shelves:
 

• Kitchen essentials such as cutting boards, bakeware, utensils, bowls and more
• Bed and bath products such as towels, pillows, throw blankets and neutral bedding
• Consumables like candles, soaps, shampoos, styling lotions, paper plates and napkins
• Donatable items such as batteries, washcloths, blankets and hand sanitizer
• Summer goods such as patio chairs, outdoor candles, tiki torches, and beach towels

Often people wait to shop when liquidation sales are well underway in hopes of getting even deeper discounts, but the merchandise will be limited, gift cards may no longer be accepted and the store could close sooner than nationwide published dates. Cashiers at my local store, for example, said their store is closing early June.

Here are more tips on using gift cards to stores in bankruptcy.

If you miss the deadline to use a gift card, file a claim with the Bed Bath & Beyond bankruptcy handler. There’s no guarantee that courts will pay gift card claims, but it’s worth a try. Additionally, I’ve seen cases where courts have extended gift card deadlines, so hold onto your gift card in case that happens.

If you have a multi-store gift card with the Bed Bath & Beyond logo, redeem the gift card for another brand listed on the card. You have plenty of options if you still need to use the card. If you did redeem the multi-store gift card for a Bed Bath & Beyond egift card, be sure to use it immediately.

What other questions do you have about Bed Bath & Beyond gift cards? Let me know in the comments below and I’ll do my best to answer.

Happy Gift Carding
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