Bed, Bath and Beyond closing over 100 more stores even as it secures major capital backer
Company has kept bankruptcy at arm's length for several months.
Home goods retailer Bed, Bath & Beyond this week announced the closure of dozens more stores around the country even as the embattled corporation managed to find a last-ditch capital backer to help prop up its cratering finances.
The company, whose retail outlets were popular from the late 1990s through the 2010s, announced this week that it had secured a major cash infusion through an unnamed investment firm, which insiders reported was Hudson Bay Capital Management.
The move, which was accompanied by a public stock offering as part of a desperate $1 billion fundraising gambit, is seen as a long-shot attempt to hold off a bankruptcy filing for the struggling retailer.
Still, the company announced the closure of 150 stores this week in several states, with the company having shuttered nearly 400 stores since last year in an effort to cut costs.
The corporation said last month it had defaulted on a credit line, raising fears of a bankruptcy filing.
Stocks in the company, which have declined sharply since 2015 and have been on a consistent downward slide since late 2021, briefly rallied on Monday before resuming a downward trajectory.