Bed Bath & Beyond prepares for bankruptcy -WSJ

April 19 – Bed Bath & Beyond Inc ( BBBY.O ) is preparing to file for bankruptcy as early as this weekend, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Shares in the company fell nearly 23% to 38 cents in after-hours trading. They are down about 86% since the company said in January it was exploring options including bankruptcy.

Once considered a category killer in home goods, the Union, New Jersey-based company has seen demand decline in recent years as its sales strategy of selling more store-brand products has failed.

Bloomberg Law reported earlier Wednesday that the struggling retailer was in talks with advisers and lenders ahead of a bankruptcy filing that could come in the next few weeks.

The company is also looking at financing options to help finance itself during bankruptcy, according to the Bloomberg Law report.

Bed Bath did not immediately respond to a Reuters request for comment on either report.

The company in February planned to raise about $1 billion in an offering of preferred stock and warrants, but ended the complex deal after raising $360 million.

The retailer again announced plans in March to sell $300 million worth of stock and warned it might have to file for bankruptcy if the sale failed.

Bed Bath said last month it was seeking shareholder approval for a reverse stock split in the range of 1-for-5 to 1-for-10.

The board has urged the shareholders to approve the split, and says that the company may have to go bankrupt if the plan does not go through.

Reporting by Granth Vanaik and Ananya Mariam Rajesh in Bengaluru

Our standards: Thomson Reuters Trust Principles.

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