Bed Bath & Beyond received another $135 million as part of a financing package aimed at helping the embattled retailer pursue a turnaround without a bankruptcy filing.
Last month’s equity raise, led by hedge fund Hudson Bay Capital, provided the Union-based company with $225 million upfront and the promise of another $800 million over the coming months.
Since then, Bed Bath & Beyond has received a total of $360 million, including the latest tranche of $135 million, and used the proceeds to repay outstanding revolving loans as well as “creating additional liquidity opportunities to support business operating activities,” the company said in a March 8 announcement.
Bed Bath & Beyond Chief Executive Officer and President Sue Gove said the retailer remains focused on improving its financial footing.
In a statement, she said, “Over the past month, we have been rebuilding our financial and operational positioning to execute our customer-focused turnaround plans. Since closing our equity financing last month, we have engaged with suppliers to improve our inventory positioning and we have continued to optimize our brick-and-mortar footprint through store closures to align with customer preference.”
“Additionally, as announced last week, we paid the outstanding interest due on all senior notes, which has been acknowledged by key constituents such as credit agencies. We continue to work with determination and diligence to fulfill both our near- and long-term goals of maximizing prospects for all stakeholders,” Gove stated.
After attempting a turnaround in August 2022 that called for 150 store closures and a 20% workforce reduction in corporate and supply chain, Bed Bath & Beyond warned in January 2023 it may file for bankruptcy protection.
Along with shutting its entire chain of Harmon stores and business operations in Canada, the company has made moves to shrink its U.S. brick-and-mortar footprint even further.
Ultimately, Bed Bath & Beyond plans to keep 480 units in business – 360 of its namesake brand and 120 Buybuy Baby stores. Altogether, the company has closed 400 stores, roughly half of the 950 locations it had in February 2022."