Struggling US home furnishings retailer Bed bath & Beyond has terminated its fundraising deal with hedge fund Hudson Bay Capital, and is instead looking to the public market to raise funds as it looks to stave off bankruptcy.
Struggling US home furnishings retailer Bed bath & Beyond has terminated its fundraising deal with hedge fund Hudson Bay Capital, and is instead looking to the public market to raise funds as it looks to stave off bankruptcy.
In February, the company avoided a bankruptcy filing by completing a complex stock offering backed by Hudson Bay providing an immediate cash injection of $225 million in funds and a pledge for $800 million in the future to pay down its current debt load.
That deal as now been cancelled and Bed Bath & Beyond is planning to raise $300 million from a stock sale to repay creditors and fund the business at it pursues a turnaround plan that involves closing around 400 of its roughly 760 stores.
The company has said that if it fails to raise sufficient cash from the sale it will “likely file for bankruptcy”.
