Bed Bath & Beyond seeks to raise another $100M

Bed Bath & Beyond is looking to raise an additional $100 million in equity to further support the cash-strapped retailer’s efforts to rebuild its business.

So far, the Union-based company has received a total of $360 million as part of a roughly $1 billion financing package aimed at helping it pursue a turnaround without a bankruptcy filing. The latest tranche of $135 million came just one week ago.

In a March 14 announcement, Bed Bath & Beyond said the terms of the equity offering agreement were amended to “further facilitate up to $100 million in additional financing in April 2023, for a cumulative total of $460 million to date.”

After closing an underwritten public offering in early February, the company said it secured $225 million upfront and anticipates an additional $800 million over the coming months.

In a statement, Bed Bath & Beyond Chief Executive Officer and President Sue Gove said, “The funding we have raised over the past month has supported our ongoing operations and enabled us to begin reinvesting in valuable inventory to fulfill customer demand.”

“We will consider thoughtful and essential actions that can enhance our business operations and accelerate results for customers, associates, suppliers and shareholders over the long term,” she added.

After issuing a warning in January that it was teetering on the brink of bankruptcy, Gove said the company has taken several steps to improve its financial footing, which include engaging with suppliers to improve inventory levels, closing low performing stores and paying off outstanding interest payments.