- The recent downward trend for Bed Bath & Beyond Inc BBBY stock has made it difficult for the struggling company to get the capital infusion, Wall Street Journal reported.
- Last week, the activist investor Ryan Cohen announced plans to sell his entire 10% stake, and many of the individuals who followed him to invest in the retail chain's shares have also sold.
- The stock has lost over 60% since then. Before that, its shares had more than quadrupled this month through Wednesday.
- As per the WSJ report, the plunging share price has made it less likely that the home-goods retailer can fix its financial problems by issuing stock.
- Related: Bed, Bath & Beyond Analyst Says Debt Restructuring Won't Save The Company.
- According to people familiar with the matter, some Bed Bath & Beyond suppliers are restricting or halting shipments as the retailer fell behind on payments, complicating the company's liquidity needs.
- In June, the company signaled it needed cash as the business is in the declining phase. It has been working with restructuring consultant Berkeley Research Group LLC.
- Urged by Mr. Cohen, Bed Bath & Beyond said earlier this year that it would explore strategic options, including a potential sale of the BuyBuy Baby brand. The company's interest in separating the seller of baby items and nursery furnishings has since cooled, WSJ reported citing people familiar with the discussions.
- Price Action: WSJ shares are down 10.70% at $9.85 during the premarket session on the last check Monday.
- Photo via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
