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Bed Bath Begins Three-Week Countdown to Possible Bankruptcy

  • Retailer aims to raise $300 million from chilly equity markets
  • Stock lost 98% of its value, or $2 billion, in past year
"Store Closing" signs at a Bed Bath & Beyond store in the Brooklyn borough of New York.
"Store Closing" signs at a Bed Bath & Beyond store in the Brooklyn borough of New York.Photographer: Stephanie Keith/Bloomberg
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It took Bed Bath & Beyond Inc. almost two months to raise $360 million in emergency financing from a hedge fund positioned to profit from the deal. It wasn’t enough. 

Now, to avoid bankruptcy, the retailer has three weeks to squeeze another $300 million from equity markets that have largely turned against it after the deal diluted existing shareholders and sent its stock down 50%.