Bed Bath & Beyond moves to secure $1B to avoid bankruptcy
The retail chain closed 150 stores in 2022, with more closures on the way
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Bed Bath & Beyond shares cratered on Tuesday after the retailer announced plans to raise some $1 billion through an offering of preferred stock and warrants in a last-ditch effort to stave off bankruptcy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | NO DATA AVAILABLE | - | - | - |
The details, disclosed in a filing with the Securities and Exchange Commission, created more volatility for the meme stock, with shares skyrocketing as much as 400% in 2021 when activist investor and Gamestop Corp chairman Ryan Cohen took a stake and sought changes.
The stock, which continues to be volatile, is trading around the $3 range and has lost over 60% of its value during the past 12 months.
Bed Bath & Beyond
In addition to 150 store closures announced in 2022, the company is now saying it will close 87 additional Bed Bath & Beyond stores and five buybuy BABY stores. The company is also shutting down its health and beauty discount chain Harmon.
BED BATH & BEYOND'S LIST OF STORE CLOSINGS
Bed Bath & Beyond store, Cherry Hill, N.J., Jan. 8, 2023. (Fox News)
Bed Bath & Beyond is currently negotiating a loan to help navigate bankruptcy proceedings, with the investment firm Sixth Street in talks to provide funding.
The firm loaned Bed Bath & Beyond $375 million last year but declined to comment on the current matter.
BED BATH & BEYOND INTERIM CEO TO STAY IN POST FOR AT LEAST A YEAR - SOURCE
Shoppers enter and exit a Bed Bath & Beyond in Schaumburg, Ill., Jan. 14, 2021. (AP Photo/Nam Y. Huh, File / AP Images)
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Fox Business' Joe Toppe and Reuters contributed to this report