Because Bed Bath & Beyond Is Having Trouble Restructuring It May End Up In Bankruptcy Court

Dec. 06, 2022 2:18 PM ETBed Bath & Beyond Inc. (BBBY)272 Comments
WYCO Researcher profile picture
WYCO Researcher


  • BBBY is having serious trouble trying to restructure their balance sheet.
  • The debt exchange offer was just extended to December 19 because only a small amount of notes were tendered.
  • Less than half of the $150 million ATM deal to sell additional shares to raise cash has been completed as of December 5.
  • The restructuring is causing massive shareholder dilution.
  • I have serious doubts that BBBY can stay out of bankruptcy court.
Bed Bath And Beyond Fires Its CEO Amid Struggling Sales

Joe Raedle/Getty Images News

It is incredible that the total equity capitalization of Bed Bath & Beyond (NASDAQ:BBBY) has plunged over the last eight years from about $17 billion to just $389 million. Currently the retailer is borrowing even more under a credit agreement. Their announced plan

This article was written by

WYCO Researcher profile picture
B.A. in Economics; M.S. in Finance. I usually write about distressed companies and companies in Ch.11 bankruptcy. I am semi-retired after spending decades in investments.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in BBBY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I covered my short sales already, but may sell short again if the stock price increases.

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