Description: The Canadian division of retailer Bed Bath and Beyond is seeking protection under Companies’ Creditors Arrangement Act. The US parent company has been experiencing financial problems of its own, declaring it cannot provide the type of support the Canadian operation requires. The company has around 400 full-time employees in Canada with another 1,000 or so part-timers who stand to be affected.

Date:  February 10, 2023

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/bed-bath-beyond-canada-going-out-of-business-closing-54-stores-1.6745092

Discussion points:

1) How many of your classmates have shopped at Bed Bath and Beyond? What is their general impression of the business?

2) What do you think are some of the factors that caused Bed Bath and Beyond to fail?

3) Pages 2-8 and 2-9 of Wiley’s Understanding Financial Accounting discuss the going-concern concept. Why is this concept important in financial accounting?