In yet another effort to stay afloat, Bed Bath & Beyond is offering $300 million worth of its stock.
The goal of the public offering is to raise money for the home furnishings and decor company’s efforts to avoid bankruptcy and pay back its creditors.
By the digits, Bed, Bath & Beyond’s burdens
400: The number of Bed Bath & Beyond stores closing, out of a total of 760, is between 40 and 50 percent: Preliminary earnings indicate that sales decreased from a year ago during the fourth quarter.
A brief chronology of Bed, Bath, and Beyond’s difficulties
2019: Mark Tritton, Target’s former chief of merchandising, was hired as CEO after the company struggled to achieve quarterly revenue growth that was positive.
2020: The covid-19 pandemic brought an end to in-store retail. Although its e-commerce sales increased significantly, they still trailed rivals like Target, which also sold food.
2021: Bed, Bath & Beyond focuses on launching around a dozen private brands as the world reopens. Customers don’t connect with them. Nonetheless, the stock soars throughout the year as it joins the meme-stock craze, along with AMC, GameStop, and other retailers of electronics.
March 2022: Ryan Cohen, GameStop’s chairman, reveals that he owns nearly 10% of the home furnishings retailer.
June 2022: Tritton is terminated after deals droop 25% in the principal quarter. Current Chief Sue Gove dominates.
July 2022: After a brief resurgence of the meme stock mania, Cohen announces his intention to sell his entire position, sending the stock plunging. One third of the company’s private labels are cut. Also this month, a shareholder files a lawsuit against the business, claiming that CFO Gustavo Arnal and Cohen were involved in a pump-and-dump scheme. A few weeks later, Arnal commits suicide.
December 2022: In a regulatory filing on Jan. 5, Bed Bath & Beyond stated that it has “substantial doubt” about the company’s “ability to continue going” after the year 2022. In another protections recording on Jan. 25, the retailer says it defaulted on its credits and needs more cash to reimburse what it owes, and is thinking about other options — incorporating rebuilding its obligation in liquidation court.
Feb. 20, 2023: Through an equity offering, Bed Bath & Beyond raises approximately $225 million and narrowly avoids bankruptcy. The principal investor in the share sale is Hudson Bay Capital Management. The mixture accompanies the chance of one more $800 million being siphoned in throughout the following 10 months.
Walk 2023: After another sharp drop in sales, Bed Bath & Beyond ends its partnership with Hudson Bay Capital for future funding. It moves on to the open market.
