Bed Bath & Beyond Inc announced its plans to raise about 1 billion U.S. dollars by selling preferred shares and issuing warrants in its final attempt to avoid bankruptcy.
Having closed up 92.1% at $5.86 on Monday in the course of extended trading following the news of the proposed offer, the retailer's shares were down 33.5%.
Bed Bath & Beyond was a part of the meme stock phenomenon. In 2021, the shares surged 400% when Ryan Cohen, activist investor and stockholder at Gamestop Corp, took part in the campaign and called for changes.
In addition to 150 stores whose closure was announced in 2022, Bed Bath & Beyond now says that it is forced to close another 87 stores along with five BABY stores. On top of that, the company also plans to close all of its Harmon drugstores.
At the moment, Bed Bath & Beyond is holding negotiations with Sixth Street investment firm in hopes to secure a loan.
The firm provided a loan worth $375 million to Bed Bath & Beyond last year, while refusing to comment on the situation.
Over the past five days, while traders continued to open short positions, the shares were up just over 113% after surging a little more than 262% last month.
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