Bed Bath & Beyond moves to secure $1B to avoid bankruptcy
The retail chain closed 150 stores in 2022, with more closures on the way
Barron's markets editor Ben Levisohn, reporter Carleton English and associate editor Jack Hough discuss whether the market rally may have further to go.
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.
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