Bed Bath & Beyond plummets as retailer announces new share sale after ending deal with Hudson Bay
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- Shares of Bed Bath & Beyond fell as much as 24% on Thursday.
- The embattled retailer has filed to sell as much as $300 million in stock to pay down debt.
- The announcement of a new share sale follows cancelation of a funding deal with Hudson Bay Capital.
Shares of Bed Bath & Beyond were trading around record lows on Thursday as the company announced plans to sell more stock after a deal for additional funding was canceled.
The company's stock fell as much as 24% on Thursday, trading around $0.66.
On Thursday, Bed Bath & Beyond filed to sell as much as $300 million in stock to pay down a credit facility.
The plan follows the company's announcement that it had pulled the plug on a deal for more financing with Hudson Bay Capital Management. The retailer did a deal with the firm in February that helped in stave off bankruptcy at the time.
Now, the company is warning that if the share sale doesn't go through, its likely next move will be to file for bankruptcy.
The stock has been an enduring favorite among the meme stock crowd, even as shares have plummeted nearly 75% this year amid the company's struggles to turn the business around. The company has warned of bankruptcy once already this year, stating in January that there was "substantial doubt" about its ability to continue doing business.