Bed Bath & Beyond has been struggling for more than a year, as the coronavirus pandemic continues to pummel the retail industry. In an effort to stay afloat, the retailer announced in November that it raised $1 billion through preferred stock offering. In addition, the company closed all of its store locations in Canada in January.
In an interview with FOX Business, Tyler Dischinger, counsel in Buchanan’s bankruptcy practice group in Pittsburgh, said the billion-dollar cash raise was a "Hail Mary" to avoid bankruptcy. Dischinger noted the market anticipated a bankruptcy filing by the end of the first quarter, but that seems less likely now. He added that the company will use this time to get on good terms with lenders while continuing to shrink their brick-and-mortar footprint. Dischinger said it was too early to tell if the financial moves were too late, but noted the company was on track to deliver roughly $500 million in yearly savings.
Bed Bath & Beyond has been struggling for more than a year due to the coronavirus pandemic, which has caused a decline in customer traffic and net sales. In an effort to stay afloat, the retailer has implemented a series of financial moves, including raising $1 billion through preferred stock offering and closing all its store locations in Canada. According to court filings, the Canadian division includes 54 stores and 11 BuyBuy Baby stores, 387 full-time and 1,038 part-time jobs. The company also announced plans to close 150 store locations by the end of fiscal 2022 and initiated incremental cost reductions of approximately $80 million to $100 million.