Bed Bath & Beyond Plans Shares Sale

Struggling home-goods retailer Bed Bath & Beyond (Union, N.J.) has announced plans to sell $300 million of its shares as it looks to raise more capital. However, the business also warned once again that it might have to file for bankruptcy if it cannot secure the funds.

President and CEO Sue Gove says the company is working to avoid that fate.

“The actions we’ve taken have enabled us to create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses,” said Gove. “We have raised $360 million of equity capital since the beginning of February, cured our default under our credit agreement, repaid material amounts of our ABL [asset-based loan] facility, completed our interest payment for our senior notes, all while jumpstarting our turnaround plans.

“In addition to leveraging our recent capital to reinvest in high-demand inventory, we are also developing a third-party consignment program that will allow us to fortify our product assortments by expanding merchandise availability from key supplier partners. We are on pace to achieve our target of 360 top-performing Bed Bath & Beyond stores by the end of April, in addition to our existing 120 buybuy BABY stores. In conjunction with our online business, these productive stores are pivotal to our omni-channel strategy and future profitability.”

In addition, BB&B has made a change in its upper management, according to news/commentary site WarrensReport, naming former board member John Fleming as Interim Brand President of its flagship nameplate, succeeding Mara Sirhal, who is leaving the company.