Bed Bath and Beyond takes aim at ocean carriers, seeks millions in freight dispute

By James Rogers

Bed Bath and Beyond, which filed for chapter 11 last month, has filed complaints against ocean carriers, claiming that they abandoned their service commitments

Bed Bath and Beyond Inc., which filed for chapter 11 bankruptcy last month, has filed complaints against two ocean carriers, claiming that they abandoned their service commitments to the troubled home goods retailer.

The Wall Street Journal first reported Tuesday that Bed Bath and Beyond filed a complaint with the Federal Maritime Commission alleging that Hong Kong-based Orient Overseas Container Line pursued "brazen price gouging and profiteering."

"Respondent brazenly demanded that complainant pay PSS surcharges in order to have any reasonable chance of getting its freight carried by respondent," the complaint says. PSS stands for peak season surcharges.

Also read:Bed Bath & Beyond: from home-goods behemoth to bankruptcy

"The injuries alleged in this complaint amount to at least $31,682,362.21, in addition to other injuries, including lost profits," the complaint adds.

A spokesperson for Bed Bath & Beyond told MarketWatch that the company does not comment on legal matters.

"OOCL has a long history of maintaining the highest standards of regulatory compliance in the U.S. and elsewhere, and an equally longstanding tradition of strong customer relationships and excellent customer service," a spokesperson for Orient Overseas Container Line told MarketWatch, in an emailed statement. "We will continue to work with our customers and all relevant authorities to resolve any disputes in a professional, efficient, and amicable manner."

More:Bed Bath & Beyond gets Nasdaq delisting notice following bankruptcy: Here's what you need to know

The Wall Street Journal reported that Bed Bath and Beyond has pursued a similar claim for $7.8 million against Yang Ming Marine Transport . The Taiwan-based carrier filed a lawsuit in federal court in Manhattan earlier in April looking to block Bed Bath and Beyond's claim, according to the Journal.

MarketWatch has reached out to Yang Ming Marine Transport with a request for comment on this story.

On Wednesday the Nasdaq Stock Market started the delisting process for Bed Bath & Beyond's stock.

Also see:Bed Bath & Beyond bankruptcy: These companies could benefit from the retailer's demise

Bed Bath & Beyond's bankruptcy follows a troubled couple of years marked by strategic missteps, cash burn, challenging underlying business trends and the impact of the COVID-19 pandemic.

-James Rogers

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05-03-23 1747ET

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