American chain of home goods stores Bed Bath & Beyond announced on Tuesday that going to sell shares for approximately 1,000 million dollars to try to avoid a bankruptcywhile it announced new closures of establishments.
The company, which He has been in serious trouble for monthsexplained that it will use the money raised and some 100 million dollars from a line of credit to cover outstanding debts and finance its operations.
The announcement of the sale of shares caused the company collapsed almost 40% at the opening of Wall Street, since the operation will dilute the value of the current titles.
According to a statement, Bed Bath & Beyond will offer shares for which expects to get about 225 million dollars immediately and an additional $800 million later in contracts that require buyers to take more titles if certain conditions are met.
In early January, the company admitted there were doubts about its viability and said it was contemplating a bankruptcy processwhich for now seeks to avoid with these new measures.
The sales retail chain fell hard last year and the company has encountered difficulties in refinancing some debts that it was unable to satisfy.
Plans to close stores
In a communication to the stock market regulator sent late on Monday, Bed Bath & Beyond said plans to close about 150 stores additional, which after the figures already communicated previously would mean closing a total of 400 establishments, almost half of those it had a year ago.
The firm has also seen strong fluctuations in its stock priceby becoming one of the favorite bets of many small investors and speculators who coordinate in internet forums.
Thus, for example, their titles had skyrocketed yesterday before the fall they were experiencing today. So far this year, the company accumulates an increase of 55%, but its shares are a 78% below from where they were now a year ago.
