Shares of Bed Bath & Beyond fell more than 26% on Thursday after the retailer said it would likely file for bankruptcy if unable to raise $300M through an equity sale.
BB&B filed to sell new shares after a fundraising deal with hedge fund Hudson Bay Capital Management LP fell apart.
- Earlier this year, the retailer was facing bankruptcy before it secured a preliminary agreement with Hudson Bay Capital Management for $1B as long as BB&B’s share price doesn’t go below $1.25.
- BBBY shares closed at 59 cents on Thursday; the company’s shares are down nearly 75% YTD.
- According to BB&B’s recent filing, the retailer plans to send all net proceeds from the share sale to its lenders on Wall Street.
- If the company is able to raise enough funds, it will use the extra to restock its stores.
