But even that option might be viewed as a positive alternative to bankruptcy by shareholders, who are last to be paid out in any filing. The risk is that by the time Bed Bath & Beyond issues its shares, which could take days, its stock could drop further, meaning the company might need to issue more shares and further dilute its current shareholders, said Reena Aggarwal, a professor of finance at Georgetown University. The equity offering, which has been tried by other ailing meme stock favorites, like AMC Theaters, is legal, securities experts said. Its stock has swung wildly in the past few weeks as traders placed bets on its fortunes. On Monday its stock surged nearly 100 percent, giving it a market value of around $690 million. The retailer disclosed last month that JPMorgan had informed Bed Bath & Beyond that it had defaulted on its debt.Īt the same time, the retailer has become a favorite of meme stock traders - retail investors who bid up the shares of undervalued companies. In August, the company announced an aggressive restructuring plan, saying that it would close 150 stores and lay off more workers.īed Bath & Beyond in August secured $500 million in new financing, including a $375 million loan from the investment firm Sixth Street and an expanded debt facility led by JPMorgan Chase. It has since gone through several rounds of layoffs. Last February, Bed Bath & Beyond had about 32,000 employees. At certain points in the past few weeks, it was unclear whether the retailer would be able to do so. The move is expected to be enough for Bed Bath & Beyond to make payments on its debt and fund its business operations so it won’t have to imminently file for bankruptcy, that person said. It already has investor commitment to buy those funds, a person familiar with the situation said. The retailer said on Monday that it had plans to raise a little over $1 billion in equity offerings, alongside tapping $100 million from its credit line, to repay outstanding loans. It said that its sales in the run-up to Black Friday were a third what they were in 2021. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.Bed Bath & Beyond, the struggling home goods retailer, announced plans for a public offering on Monday, a move that it hopes will allow it pay off its debts and possibly stave off bankruptcy.Įarly last month, Bed Bath & Beyond warned investors that bankruptcy was a possible option, if it could not otherwise raise money after a disappointing holiday season. ![]() The Company sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. and subsidiaries (the "Company") is an omnichannel retailer that makes it easy for our customers to feel at home. and Bryan Cave Leighton Paisner LLP.īed Bath & Beyond Inc. We remain committed to driving sales and margin growth, generating cash and investing in our business plan to drive shareholder value."Īdvisors to Bed Bath & Beyond on this transaction included B. These efforts will help fund our transformation and put us in the position to start fiscal 2021 with a more cohesive set of core businesses in Home, Baby, Beauty & Wellness. Mark Tritton, Bed Bath & Beyond's President and CEO said, "The completion of this transaction marks the conclusion of our work to streamline our portfolio. Both companies have agreed to a transition services agreement following the close of the transaction to help ensure business continuity. ![]() (Nasdaq: BBBY) today announced the completion of the sale of Cost Plus World Market (CPWM) to Kingswood Capital Management, a Los Angeles-based private equity firm. 19, 2021 /PRNewswire/ - Bed Bath & Beyond Inc.
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