The situation for Bed, Bath & Beyond has proven to be quite worse in the year 2022. The situation for home goods retailers has continued to worsen in recent months.
The situation went extremely south for Bed, Bath & Beyond when Ryan Cohen, an activist investor who had a huge stake in the company, sold all of it in early August.
Aftermath
Following Cohen’s departure, Bed, Bath & Beyond has found itself facing the worst time since its public listing.
The company is now finding it too difficult to deal with the problems that are at hand. The officials at Bed, Bath & Beyond recently shared their plans about what they plan on doing with the company.
The company has announced that it is now aiming to sell its stocks and for this purpose, they are trying to get permission. For now, the company has not disclosed the total number of common stocks they are planning to sell.
Although the share prices for the company have experienced a huge surge of up to 140%, still, the company expects its liquidity to go down.
For now, Bed, Bath & Beyond has submitted a request to the Securities and Exchange Commission and is waiting for their approval. With the approval, Bed, Bath & Beyond will proceed with selling its common stocks.
Shares Sold by Ryan Cohen
Earlier in August, Ryan Cohen sold 9.45 million shares, which accounted for the full stake the activist investor had in Bed, Bath & Beyond.
According to a filing by RC Ventures at the Securities and Exchange Commission, the stake Cohen held was sold for $60 million.
Bed, Bath & Beyond to Shut Down its Stores
Additionally, Bed, Bath & Beyond has announced that it will soon be closing a large number of its stores. According to sources, the retail chain is aiming to sell around 150 stores.
In addition to the above, Bed, Bath & Beyond is also aiming to cut off its overall expenses. The company is determined to cut off and save around $250 million and the closure of 150 stores may help them achieve that.
The company officials have confirmed that they have also secured an enormous amount in the form of debt financing. As per the officials, the new debt financing amount they have secured is half a billion ($500 million).
Sue Gove, the interim CEO has stated that right now, their aim is to provide more strength to their liquidity. They are aiming to secure their path to a bright and lucrative future for their company.
In the recent trading session, the share prices for Bed, Bath & Beyond dipped 23.8%. At the time of writing, Bed, Bath & Beyond’s shares are trading at a low of $9.23 per share.
