Bed Bath & Beyond files for bankruptcy -- what it means

Bed Bath & Beyond filed for bankruptcy Monday, a week after David's Bridal did the same.

The filing comes after declining profits and store closures.

"This is really symptomatic of the change that in the retail industry right now, which is that we're shifting from something that was entirely based upon the brick and mortar stores to something that more and more is based in the online world," said Michael Greiner, a former bankruptcy attorney and professor at Oakland University. 

Bed Bath & Beyond will likely be closing its stores as a result of this filing.

"In this case, though, it appears that what they're doing is that they're hoping somebody will buy sections of the store and there's talk, for example, that I think, Bye Bye, Baby, there's talk about that possibly being sold off to one investor. But for the most part, it looks like this company is just going to be shut down," Greiner said.

The bankruptcy filing is a trend Griener said he thinks more businesses will follow.

"As a result of Covid you had kind of this boost in spending. Now that you're starting to see that spending go down a little bit, I think that you're starting to see these stores were now that were, where they were struggling before, finally the chickens are coming home to roost, and I think this is not going to be the last we see of firms that file bankruptcy," he said.