Bed Bath & Beyond (NASDAQ:BBBY) shares dipped Friday, building on a more than 26% loss from Thursday’s session. The declines came after the company once again warned that it may need to file for bankruptcy protection if its proposed $300-million stock offering fails.
Concurrent with the offering, the company has entered into a stock purchase agreement and a registration rights agreement with B. Riley Principal Capital II to secure additional capital.
Furthermore, Bed Bath & Beyond reported prelim results for fourth quarter of fiscal year 2022, estimating net sales of approximately $1.2B, which is way below analysts’ consensus of $1.41B .
Prelim Q4 comparable sales is projected to decline 40%-50%, with continued negative operating losses. Furthermore, the Union, New Jersey-based retailer sees modest free cash flow usage.
Said CEO Sue Gove, “The actions we’ve taken have enabled us to create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses. We have raised $360 million of equity capital since the beginning of February, cured our default under our credit agreement, repaid material amounts of our ABL facility, completed our interest payment for our Senior Notes, all while jumpstarting our turnaround plans.”
Shares of Bed Bath & Beyond have fallen around 97% over the past year. They opened Friday, the last day of Q1 down nine cents, or 15.4%, to 50 cents.