Bed Bath & Beyond Plans Share Sale in Bid to Avoid Bankruptcy

  • Company announces share sale to raise more than $1 billion
  • Retailer lined up enough investors to complete sale: sources

A Bed Bath & Beyond store in Westbury, New York.

Photographer: Johnny Milano/Bloomberg
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Bed Bath & Beyond Inc. lined up investors for an eleventh-hour cash infusion that would allow it to stave off a bankruptcy filing, according to people with knowledge of the matter.

The retailer, which has been preparing for a Chapter 11 filing after lenders declared it in default last month, priced new convertible preferred securities and warrants, it said in a statementBloomberg Terminal Tuesday, in a deal that will ultimately raise more than $1 billion.