Bed Bath & Beyond Staves Off Bankruptcy With $225 Million From Stock Sale
Bed Bath & Beyond Inc. said on Tuesday it raised about $225 million in an equity offering and may get another $800 million over the next 10 months, as the struggling retailer tries to avoid bankruptcy.
Bed Bath, which first raised the prospect of bankruptcy early last month, said on Monday it planned to raise roughly $1 billion in a complex deal where it offered preferred stock and warrants.
Analysts said the new cash may afford Bed Bath only a few quarters to revive its business, and a weakening economy would diminish any chance of a successful turnaround.
The offering “may be a Band-Aid but I’m not certain of all the makeup of their balance sheet,” said Robert Gilliland, managing director at Concenture Wealth Management. “The problem is that they’re probably not going to be a big turnaround story.”…