Shares of Bed Bath & Beyond fell to a record low on Thursday shortly after the company announced that it will likely have to file for bankruptcy if it doesn’t manage to secure funding from a massive, $300 million stock sale.
It announced as much in a filing with the SEC, saying, “If we do not receive the proceeds from the offering of securities covered by this prospectus supplement, we expect that we will likely file for bankruptcy protection.”
Shares in the stock crashed after that filing came out, closing below a dollar on Thursday and at just 43 cents at the end of the day on Friday.
Fox Business, reporting on the company’s desperate financial situation, noted that the company had announced it was in dire straights in January and that it has been shuttering stores in a desperate attempt to turn around its finances, saying:
The beleaguered retailer first issued a warning in January as it struggled to attract shoppers and compete with behemoths such as Walmart, Amazon and Target.
At the time, it announced that it was looking into options, including selling assets or restructuring its business in bankruptcy court. However, it acknowledged that even those efforts may not be successful. Meanwhile, the company continued to shutter dozens of stores to try and turn around its business.
In addition to 150 store closures announced in 2022, the company said it will close 87 additional Bed Bath & Beyond stores and five BuyBuy Baby stores. The company is also shutting down its health and beauty discount chain Harmon.
Despite the desperate situation, CEO Sue Gove said in a statement on Thursday that the company still could recover, claiming that what it has done so far has managed to “create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses.”
Bed, Bath, and Beyond canceled MyPillow shortly after the events of January 6th, as CNBC reported at the time, saying:
“I just got off the phone with Bed Bath & Beyond,” Lindell said during an interview Monday evening with the Right Side Broadcasting Network. “They’re dropping MyPillow.”
“Just got off the phone — not five minutes ago. Kohl’s, all these different places. … These guys don’t understand,” he went on. “They’re scared. Like a Bed Bath & Beyond, they’re scared. They were good partners. In fact, I told them, ‘You guys come back anytime you want.’”
Bed, Bath, and Beyond, in a statement released at the time, said, “As previously announced, we have been rationalizing our assortment to discontinue a number of underperforming items and brands,” he said. “This includes the MyPillow product line.”
Lindell, at the time, told CNBC “The other box stores that keep MyPillow are going to be very busy. Our business probably doubled because of this and I just want our customers to know that. … Thank you for standing by us. And thank you for always standing by, I’ve been attacked before.”
So now, a few years after canceling MyPillow, which is doing better than ever, Bed, Bath, and Beyond is on the rocky shoals of financial disaster.
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