Bed Bath & Beyond stock fell 28.7% to $8.64 in premarket trading on Wednesday as the struggling home retailer unveiled a slew of initiatives to turn the business around, as the rollercoaster ride for the once-meme stock darling continues.
Bed Bath & Beyond announced a number of cost-cutting measures, closing about 150 brick-and-mortar locations and laying off about 20% of corporate and supply chain employees.
In a separate Securities and Exchange Commission filing Wednesday, the company said it may “offer, issue and sell shares of our common stock,” news that contributed to the stock’s decline.
Bed Bath & Beyond also said Wednesday that it secured more than $500 million in new financing, including $375 million from Sixth Street Partners, a much-needed one to address the company’s massive debt load. Deal.
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A favorite of retail investors since early last year, Bed Bath & Beyond shares have recently hit the crater along with other meme stock darlings, falling nearly two-thirds from January 2021 highs. Popularity on the Wall Street bets Reddit forum has led to a rally in the company’s stock this month, rising 300% to $23.08 from Aug. 1 to Aug. 17. Shares of Bed Bath & Beyond fell more than 40% after billionaire investor Ryan Cohen sold it on Aug. % stake in the retailer, although they increased by about 15% since last Wednesday Wall Street Journal reported on the new funding Sixth Street Partners is doing the financing.
Dozens of other major companies have also announced layoffs this summer amid fears of a recession. Snapchat’s parent Snap plans to cut about a fifth of its workforce, The Verge reported Tuesday.
Bed Bath & Beyond faces ‘important months ahead’ as retailer prepares to deliver a strategic update on turnaround plans Forbes,
Bed Bath and Beyond Falls fell more than 40% after investor Ryan Cohen sold his entire stake (Forbes,