Bed Bath Warns of Bankruptcy Risk in $300 Million Offering
- Retailer forced to sell more shares as hedge-fund rescue ends
- Firm at mercy of Wall Street lenders as sales decline further
A Bed Bath & Beyond store in Westbury, New York.
Photographer: Johnny Milano/BloombergThis article is for subscribers only.
Reeling from a collapse in its stock price and at the mercy of Wall Street banks, Bed Bath & Beyond Inc. warned it will likely go bankrupt if a last-gasp $300 million equity offering fails.
The retailer filed to sell new shares to stay afloat and repay creditors after a hedge-fund rescue effort faltered and as day traders — famed for bidding up unprofitable companies — flee. If the offering “is not fully consummated,” the company said Thursday, “we expect that we will likely file for bankruptcy protection.”