- Bed Bath & Beyond (BBBY) announced on Wednesday that it has raised an additional $135 million from its equity offering, bringing the total amount of proceeds up to $360 million as of March 7. This follows the $225 million the company stated it had raised in early February.
- Bed Bath was teetering on the brink of bankruptcy before going public with its equity offering. In January, the company defaulted on some loans and was late in paying interest on its senior notes. With its business in peril, Bed Bath's management team was exploring all avenues—including bankruptcy—for survival.
Why it matters
Bed Bath made a bold move to avoid Chapter 11 bankruptcy, securing an impressive $225 million in funding with a promise of an additional $800 million in the near future. After securing the equity financing, the company has worked diligently to pay off its debt and recently settled the interest due on all senior notes. Additionally, the company has been working on improving its inventory and closing stores to create a more efficient brick-and-mortar presence.