The US chain of home goods stores Bed Bath & Beyond announced Tuesday that it will sell shares worth approximately 1,000 million dollars to try to avoid bankruptcy, while announcing new store closures.
The company, which has been in serious trouble for months, explained that it will use the money raised and about $100 million from a line of credit to cover outstanding debts and finance its operations.
The announcement of the sale of shares caused the company to collapse almost 40% at the opening of Wall Street, since the operation will dilute the value of the current titles.
According to a statement, Bed Bath & Beyond will offer shares for which it expects to fetch about $225 million immediately and an additional $800 million later in contracts that require buyers to take more titles if certain conditions are met.
At the beginning of January, the company admitted that there are doubts about its viability and said that it was contemplating a bankruptcy process, which for now it seeks to avoid with these new measures.
The retail chain’s sales fell sharply last year and the company has found it difficult to refinance debts that it was unable to satisfy.
In a communication to the stock market regulator sent late on Monday, Bed Bath & Beyond said it plans to close some 150 additional stores, which after the figures already reported previously would mean closing a total of 400 establishments, almost half of those it had ago. one year.
The firm has also seen strong fluctuations in its stock price, becoming one of the favorite bets of many small investors and speculators who coordinate on internet forums.
Thus, for example, their titles had skyrocketed yesterday before the fall they were experiencing today. So far this year, the company accumulates an increase of 55%, but its shares are 78% below where they were a year ago now. EFE
This story was originally published on February 7, 2023 8:55 a.m.
Source: El Nuevo Herald