Despite multiple Hail Mary attempts, Bed Bath & Beyond is again talking with advisers and lenders in preparation of a bankruptcy filing that could come soon, according to Bloomberg Law and the Wall Street Journal, which cited people with knowledge of the matter. The reports also said the troubled home goods retailer is weighing its financing options to keep itself going during bankruptcy proceedings.
The bankruptcy filing may come before the April 26 deadline the company set to raise another $300 million from equity investors, though nothing has been finalized.
The news comes just a week after the troubled home goods retailer’s shareholders were urged by Glass Lewis to push through the chain’s risky reverse stock split plan after fellow proxy advisory firm Institutional Shareholder Services (ISS) offered the same advice. The company also inked a $120 million vendor consignment agreement with ReStore Capital, an affiliate of Hilco Global, to help it supplement inventory at both Bed Bath & Beyond and its BuyBuy Baby banner.
Earlier this year, Bed Bath & Beyond staved off bankruptcy after raising $360 million after hedge fund Hudson Bay Capital purchased the company’s offering of Series A shares. The company was sued in March by employees in New Jersey citing WARN Act violations in the wake of store closings, as part of its plan to streamline to just 360 locations.
News of the potential filing came as meme investors have returned to action, surging trading of Bed Bath & Beyond’s stock 34.4 percent as of Wednesday morning, after pumping its value by 17.6 percent on Monday and 22.5 percent on Tuesday.
That rally came after the company’s stock fell to al all-time low of 24 cents on Friday, after Bed Bath & Beyond said it had sold more than 100 million shares of stock for $45 million in net proceeds.