Bed Bath & Beyond on Thursday said it plans to sell $300 million worth of its shares as a means to raise more capital, and again warned it might have to file for bankruptcy protection if it cannot secure the funds.
Through a filing with the Securities & Exchange Commission, the Union-based home goods retailer said it may offer and sell up to $300 million of shares of its common stock from time to time through an “at-the-market” offering program.
The company also entered into a stock purchase agreement with B. Riley Principal Capital II to provide additional capital, while simultaneously terminating its previous public offering of equity and warrants to buy convertible preferred stock. It plans to use the net proceeds to help with strategic initiatives in fiscal 2023, such as investing in merchandise inventory, increasing store footprint and realigning cost structure.
If the offering “is not fully consummated,” the company said Thursday, “we expect that we will likely file for bankruptcy protection.”
Sue Gove, CEO and president of Bed Bath & Beyond, said: “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. 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 facility, completed our interest payment for our senior notes, all while jumpstarting our turnaround plans.”