Shares of Bed Bath & Beyond fell to a record low Thursday after the company warned that it will “likely” file for bankruptcy if it’s unable to secure funding from a $300 million stock offering.
“If we do not receive the proceeds from the offering of securities covered by this prospectus supplement, we expect that we will likely file for bankruptcy protection,” the company said in a filing with the Securities and Exchange Commission.
BED BATH & BEYOND MOVES TO SECURE $1B TO AVOID BANKRUPTCY
The stock, now trading below $1, has lost more than 70% of its value during the past 12 months.
This isn’t the first time the retailer has warned that it might have to file for bankruptcy protection.
The beleaguered retailer first issued a warning in January as it struggled to attract shoppers and compete with behemoths such as Walmart, Amazon and Target.
At the time, it announced that it was looking into options, including selling assets or restructuring its business in bankruptcy court. However, it acknowledged that even those efforts may not be successful. Meanwhile, the company continued to shutter dozens of stores to try and turn around its business.
In addition to 150 store closures announced in 2022, the company said 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
CEO Sue Gove said in a statement on Thursday that actions the company has already taken have enabled it to “create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses.”
In part, Gove said the company has raised $360 million of equity capital since the beginning of February.
“The customer experience remains our top priority and we are making meaningful progress to improve our business and calibrate to customer demand,” Gove said.
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She noted that the company is on track to achieve its target of 360 top-performing Bed Bath & Beyond stores by the end of April, in addition to its existing 120 BuyBuy Baby stores, which remain pivotal to its omnichannel strategy and future profitability.
The Associated Press and FOX Business’ John Salvatore contributed to this report.
