new York The ailing US furniture store Bed Bath & Beyond is making a last-ditch attempt to avert impending bankruptcy. The homewares retailer plans to raise $1 billion through an offering of preferred stock and warrants, the company said Monday.
If the complex transaction cannot be completed, Bed Bath & Beyond will “probably have to file for bankruptcy protection.” If the proposed offer is successful, it will receive an exemption from the recent bank failure. The chain had defaulted on a loan repayment in the past few weeks.
The company has also hired a liquidator to close more stores unless a last-minute buyer is found, two people familiar with the matter told Reuters. Talks have been held with an investment company in the past few days.
Bed Bath & Beyond gained 92.1 percent on Wall Street after a roller-coaster ride and fell 33.5 percent in extended trading following the announcement of the proposed offering.
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