- Bed Bath & Beyond (BBBY) has issued a dire warning — it could be headed to bankruptcy if its proposed $300 million stock offering doesn't come through. In a securities filing Thursday, the retailer revealed its lenders have downsized its loan. Without the proceeds from the stock offering, it said bankruptcy protection may be its only option.
- The company revealed that the loans it obtained in the previous year had been reduced. A filing with the Securities and Exchange Commission reported that the $565 million revolving loan had been cut to $300 million. Additionally, as part of the modification to its loans, Bed Bath will be obliged to make monthly interest payments.
Why it matters
After a February stock offering that was anticipated to generate at least $1 billion in equity, Bed Bath & Beyond has now received $225 million and used it to pay off some of their debt. Despite this, their stock has dropped dramatically in the past few months and currently sits at about 70 cents per share, a 17% decrease.
