Bed Bath & Beyond will live to see another day – at least for now.
The beleaguered home goods retailer has finalized a Hail Mary stock offering that’s expected to infuse more than $1 billion in equity into the company in hopes it’ll stave off bankruptcy and liquidation, the company announced Tuesday.
The company also secured another $100 million loan from Sixth Street Partners, one of its lenders. B. Riley Securities was the sole bookrunner for the offering, Bed Bath said.
Bed Bath’s stock fell more than 48% on Tuesday. Its market value is about $353 million.
The cash infusion will be used to pay some of the retailer’s debts after it defaulted on a loan with JPMorgan last month and missed a $25 million interest payment on Feb. 1, the company said in securities filings.
Whatever’s left over will be used to aid Bed Bath’s attempt at a turnaround, the company said. However, it warned that if the deal doesn’t work out, it will “likely” file for bankruptcy and see its assets liquidated.
The company said in a filing Monday that it would close an additional 150 Bed Bath stores. It had already shuttered 200 of its namesake stores and 50 of its Harmon Face Values locations. It had 955 stores open at one point earlier last year.
– CNBC’s Lillian Rizzo contributed to this report.
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