Bed Bath & Beyond Credit Rating & NNN Status

Metric	Details
Original 2023 Debtor	Bed Bath & Beyond Inc., renamed 20230930-DK-Butterfly-1, Inc. on September 21, 2023 under the bankruptcy confirmation order (Form 8-K); filed Chapter 11 on April 23, 2023 to wind down the business; stores liquidated
Chapter 11 Filed	April 23, 2023
Liquidation	Store liquidation sales began at the April 2023 filing
Brand Acquired By	Overstock.com (purchase completed June 28, 2023), a separate company from the original debtor; it later operated as Bed Bath & Beyond, Inc. and was renamed Neighborhood Intelligence, Inc. on August 14, 2026
Physical Stores Closed	The roughly 480 stores open at the April 2023 filing (about 360 Bed Bath & Beyond and 120 buybuy BABY); the company had 1,552 stores across all banners as of March 3, 2018
S&P / Moody’s (original 2023 debtor)	No current rating verified
Investment Grade Status (original 2023 debtor)	Not a current operating tenant credit; no current rating verified
Former Store Size	Predominantly 18,000 to 50,000 SF (Form 10-K for the year ended February 25, 2023)
Former Store Property Status	Varies by property: assigned to another retailer, re-tenanted or vacant; confirm for the specific property

Original 2023 debtor: no longer operating. Bed Bath & Beyond Inc., the retailer that filed Chapter 11 in April 2023 and was renamed 20230930-DK-Butterfly-1, Inc. on September 21, 2023 (Form 8-K), liquidated its stores and is not a current retail operator; we have not verified any current agency rating for it. The Bed Bath & Beyond brand belongs to a separate company, which reported owning it in its Form 10-Q for the quarter ended June 30, 2026 and changed its name to Neighborhood Intelligence, Inc. on August 14, 2026 (Form 8-K). Newer Bed Bath & Beyond stores can have a different tenant, so identify the obligor named in any current lease. See the investment grade credit tenant ratings table.

What Happened to Bed Bath & Beyond?

Bed Bath & Beyond filed for Chapter 11 bankruptcy protection on April 23, 2023, after net sales fell about 32% in Fiscal 2022, to $5.34 billion (Form 10-K for the year ended February 25, 2023). As of March 3, 2018, the company operated 1,552 stores across all of its banners, including 1,017 Bed Bath & Beyond and 119 buybuy BABY stores (Form 10-K); by the April 2023 filing about 360 Bed Bath & Beyond and 120 buybuy BABY stores remained. The company filed in order to carry out an orderly wind down while running a limited sale process for its assets; liquidation sales began at its stores, the Bed Bath & Beyond brand was sold to Overstock.com in June 2023, the court approved a sale of the buybuy BABY business in July 2023, and selected store leases were sold to other retailers.

The Bed Bath & Beyond brand and intellectual property were subsequently acquired by Overstock.com, which completed the purchase on June 28, 2023, later operated under the name Bed Bath & Beyond, Inc., and changed its corporate name to Neighborhood Intelligence, Inc. effective August 14, 2026. The original chain’s store network no longer exists, although Bed Bath & Beyond brand stores have opened under license since 2025. If you are researching Bed Bath & Beyond as a potential NNN tenant or evaluating a property formerly occupied by the chain, the original 2023 debtor is not the current retail operator, so identify the actual lease obligor on any newer Bed Bath & Beyond store.

What This Means for NNN Investors Who Owned Bed Bath & Beyond Properties

Former Bed Bath & Beyond NNN Owners: If you owned a property leased to Bed Bath & Beyond when it filed in April 2023, the outcome depends on your property’s documents. Some leases were assumed and assigned to other retailers through the Chapter 11 case, and others were rejected (11 U.S.C. 365). Rejection is treated as a breach of the lease (11 U.S.C. 365(g)), and a landlord’s claim for damages resulting from the termination of a real property lease is limited by 11 U.S.C. 502(b)(6). When you regained possession, and what claim you hold, depend on the court orders and any assignment, surrender or settlement for your specific property; review them with counsel. This is general information, not legal advice. Where a property came back vacant, the focus now is re-tenanting a large-format box; the chain’s stores were predominantly 18,000 to 50,000 square feet (Form 10-K, February 25, 2023).

Owners of former Bed Bath & Beyond boxes have several possible replacement-tenant categories: off-price retailers (Burlington, for example, acquired 64 Bed Bath & Beyond store leases during the first three quarters of its fiscal 2023, per its Form 10-Q), fitness operators, home and flooring retailers, grocers, and medical or health system outpatient users. The specific re-tenanting outcome depends heavily on the center’s co-tenancy, demographics, and market.

The Bed Bath & Beyond Credit Story: A Cautionary Tale

Bed Bath & Beyond’s decline shows how quickly a large retail tenant’s credit can deteriorate: net sales fell about 32% in Fiscal 2022, and the company filed for Chapter 11 on April 23, 2023 to wind down its business (Form 10-K and Form 8-K). The lesson for NNN investors is clear: credit ratings must be monitored continuously, not just at acquisition.

For investors who held Bed Bath & Beyond properties through the bankruptcy, the experience reinforces the importance of tracking tenant credit ratings and understanding the early warning signs of credit deterioration: sustained same-store sales declines, rising leverage ratios, liquidity covenant concerns, and multiple rounds of debt restructuring. None of these are visible from the property level alone; they require active monitoring of the tenant’s financial disclosures.

Former Bed Bath & Beyond Property Re-Tenanting Guide

Replacement Tenant Category	Format Fit (site-specific)	Credit and Lease Check
Off-price apparel (Burlington, Ross, TJ Maxx)	Size needs vary by banner	Varies: check each tenant’s current rating and the lease obligor
Fitness (Planet Fitness, LA Fitness)	Size needs vary by operator	Varies: confirm term and guarantor
Grocery (ALDI, Lidl, discount grocer)	Possible, if the layout permits	Varies: confirm the operator’s credit and lease terms
Home improvement / flooring	Varies: confirm size needs	Varies: confirm the operator’s credit and lease terms
Medical / health system outpatient	Possible, with buildout investment	Varies: confirm the obligor’s credit
Discount grocer / dollar concept	Possible; a smaller format may require demising	Varies: confirm the operator’s credit and lease terms

Did Bed Bath & Beyond go bankrupt?

Yes. Bed Bath & Beyond filed Chapter 11 bankruptcy on April 23, 2023, and subsequently liquidated its remaining roughly 480 stores. The company used Chapter 11 to wind down and liquidate its business. No qualified going-concern bid was submitted for buybuy BABY; the Bed Bath & Beyond brand and selected store leases were sold separately, and the court approved a separate sale of the buybuy BABY business. The brand was acquired by Overstock.com, which initially ran it online only.

Does Bed Bath & Beyond still have stores?

The original company’s stores all closed in the 2023 liquidation. The brand was bought by Overstock.com, which ran it online; in 2025 The Brand House Collective (formerly Kirkland’s) began opening Bed Bath & Beyond brand stores under an exclusive license. The brand owner acquired The Brand House Collective on April 2, 2026 and The Container Store on July 8, 2026, and changed its corporate name to Neighborhood Intelligence, Inc. effective August 14, 2026. Those new stores are a different tenant from the liquidated 2023 debtor, so identify the actual lease obligor on any property.

What happened to properties where Bed Bath & Beyond was the NNN tenant?

Outcomes varied by lease. Some leases were sold and assigned through the bankruptcy (Burlington, for example, acquired 64 Bed Bath & Beyond leases), while others were rejected; for a rejected lease, possession of the space and any claim for damages depend on the court orders and documents for that property. Owners should review the bankruptcy orders and assignment documents for their specific property. Off-price retailers, fitness operators, grocers and medical users are among the replacement-tenant options for former Bed Bath & Beyond boxes.

Own a Former Bed Bath & Beyond Property?

When a tenant closes stores or stops operating, the value of the property depends on the current lease, any replacement tenant and how easily the building can be re-leased. We can review the lease and the replacement tenant’s credit, prepare an opinion of value from current listings and recent sales, and help you sell or find a replacement property in a 1031 exchange.

Contact Investment Grade or email team@investmentgrade.com.