Bed Bath & Beyond on Friday disclosed plans to issue additional shares of its common stock with a maximum aggregate offering amount of up to $150 million. The shares will be listed under the company’s existing at-the-market offering program.
Proceeds from the sale of shares will be used to rebalance the company’s inventory and assortment, as well as help pay down debt. As of late August, Bed Bath & Beyond’s long-term debt stood at $1.7 billion.
The company earlier this year sold an additional 12 million shares, producing aggregate gross proceeds of about $75 million.
Bed Bath & Beyond is in the midst of a turnaround likely to determine the retailer’s fate. In August, the company laid out a plan that included closing stores, laying off employees and discontinuing some of its private labels as it realigns its assortment to focus on national brands.
In its most recent quarter, Bed Bath & Beyond reported net sales fell 28% year over year to $1.4 billion, while comparable sales fell 26%. The company’s operating loss swelled to $346.2 million from $84.1 million last year, while its net loss grew to $366.2 million from $73.2 million in the year-ago period.
Earlier this month, Bed Bath & Beyond announced a bond exchange offer, which entails buying back three groups of senior unsecured notes and offering new notes due in 2027 that come with varying interest rates and terms. Following the announcement, S&P Global Ratings downgraded Bed Bath & Beyond’s corporate credit rating, calling the offering exchange “distressed.”
In addition to facing steep sales declines, the retailer is also experiencing a shakeup to its C-suite. Following the departure of Target veteran Mark Tritton as CEO in June, Sue Gove took on the role in the interim, which was then made permanent earlier this week. Other positions, including the chief financial officer, chief operating officer and chief merchandising officer have experienced changes in recent months as well.
