BBBY: Bed Bath & Beyond Floats Bankruptcy as Stock Falls 27%

Bed Bath & Beyond is shrinking at a fast clip. Is the home-goods retailer beyond saving?

• Bed Bath & Beyond said it is planning to sell up to $300mn in new shares. The move is expected to provide enough liquidity for the home-goods retailer to repay its outstanding loans under its credit facility. If the company does not raise enough, it may not be able to avoid bankruptcy.
• The announcement came alongside disappointing preliminary results for the fiscal fourth quarter. Bed Bath & Beyond expects net sales of roughly $1.2bn for the three months ended Feb.25. The figures fell short of analyst consensus of $1.4bn.
• Shares of Bed Bath & Beyond fell 27% on Thursday, extending its year-to-date losses to more than 74%. What’s more, the company is planning to close around 400 of its 760 stores – a tough call that will aim to shore up cash and allow the retailer to focus on profitable stores.