Bed Bath & Beyond Potentially Avoids Bankruptcy with Equity Sale — Retail Bum

Bed Bath & Beyond has raised $225 million in equity offering and may secure another $800 million over the next 10 months — a Hail Mary for the struggling retailer that could help it avoid bankruptcy and liquidation.

In addition, the company has secured $100 million from its lender Sixth Street Partners.

The cash injection will help the company pay off some of its debts after it defaulted on a loan from JPMorgan around January 13 this year and failed to make a $25 million interest payment last week. Any remaining funds will be used to turn around the company’s business.

“This will enable us to better serve our customers and grow profitably by directing merchandise where and how they want to shop with us. We are also prioritizing availability of leading national and emerging direct-to-consumer brands our customers know and love,” said CEO Sue Grove.

The company warned that it would likely have to file for bankruptcy if its latest effort does not pay off. In recent months, the company has drastically cut down its footprint by closing 200 namesake store locations and 50 Harmon Face Values stores. The company also plans to shutter an additional 360 Bed Bath locations and 120 Buy Buy Baby stores.