authored by Scott Kanowsky
After years of poor performance, Bed Bath & amp Beyond Inc.( NASDAQBBBY ) filed for bankruptcy protection, and shares of the company fell sharply in premarket U. S. trading on Monday.
The home goods company attempted to maintain its viability earlier in 2023 through a complicated sale of preferred stock and warrants intended to raise$ 1 billion. The company announced a last-ditch effort to raise$ 300 million from investors after that work was scrapped next month.
However, neither this funding effort nor a string of store closings have been successful. In order to give Bed Bath & amp Beyond enough time to liquidate some or all of its assets, it is now anticipated that it will use the bankruptcy proceedings.
Various stakeholders are likely to lose their positions as a result of the process, which usually prioritizes debt repayments over investor recoveries in the hierarchy of importance.
Bed Bath & amp Beyond stated that it would pursue a sale and move away from liquidation if the business's's bidder came forward.
The retail chain, which was once a greatly well-liked staple of suburban American existence, had hitherto made an effort to restructure its business in order to address the declining demand for its personally branded goods. In the end, this campaign was unsuccessful, as Bed Bath & amp Beyond reported a loss of about$ 393M and sales that fell by 33 % during the quarter that ended on November 26.
Shares of Bed Bath & amp Beyond decline as a result of business filing for bankruptcy
