Bed Bath & Beyond shares dropped more than 22% on Thursday after the retailer said it didn't have enough cash to pay down its debts and has defaulted on its credit lines.
BB&B said it received a notice from JPMorgan on Wednesday asking for immediate repayment of all its outstanding loans owned to the bank.
- Earlier this month, BB&B warned it was running out of cash and was exploring various strategic options, including filing for bankruptcy.
- As of November, the company had $154M in cash and cash equivalents.
- BB&B has $550M in loans outstanding from banks led by JPMorgan and $375M from a facility provided by Sixth Street Partners.
- BB&B suffered multiple losses as sales dropped from a failed turnaround strategy where it swapped out name brands like KitchenAid and Calphalon for private-label goods.
- The company also had trouble stocking its shelves after falling behind on suppliers' payments.
- BB&B posted a net loss of $1.12B for the nine months that ended Nov. 26.
