Union, N.J. – Yesterday, Bed Bath & Beyond was scrambling for a cash infusion. Today, it got one.
Hudson Bay Capital has stepped up to the plate as the anchor investor on the share sale Bed Bath & Beyond announced late yesterday, according to Bloomberg News and the Wall Street Journal. The hedge fund is reportedly planning to buy more than $1 billion in equity.
The Journal described Bed Bath & Beyond’s agreement with Hudson Bay Capital as a “do-or-die rescue deal” that will forestall an immediate bankruptcy filing.
In its filing with the SEC yesterday, Bed Bath & Beyond announced it was turning to the public markets in a bid to drum up cash. It plans to use the funding to pay on a defaulted loan with JPMorgan and a missed $30 million interest payment on its notes.
“In our view, this is a last roll of the dice from a company that is desperate to raise cash to provide some financial headroom to pay down debts and keep operations going,” GlobalData managing director Neil Saunders told CNBC.