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Bloomberg
Bed Bath & Beyond Inc shares plunged in premarket trading on Wednesday after the home-goods retailer announced in a filing that it may offer, issue and sell shares of its common stock from time to time.
Shares in the retail-trader favourite sink as much as 21% as of 6:42 am New York time, erasing an earlier gain of as much as 6.5%. The company said it plans to use proceeds from any sales of its common stock to, among other things, pay down its outstanding debts. The announcement comes as investors geared up for a strategic update from
the home-goods retailer, due before the opening bell.
While the focus of Bed Bath & Beyond’s “business and strategic update†is unknown, it will be watched closely following last week’s report that the company was said to be looking to mortgage its prized Buybuy Baby brand. Morgan Stanley analysts have previously said that cash burn and vendor support will also be in focus at the conference call.
It’s been a wild month for Bed Bath & Beyond shares amid a return of retail-trader interest. The stock jumped from a low of $4.89 at the start of August to an intraday high of $30 in the middle of the month, before paring those gains. It came under pressure recently after influential investor Ryan Cohen sold his stake in the firm, only to bounce back on the possibility of fresh financing.
Overall, the shares are down 17% this year on worries over a slump in sales and some suppliers halting or restricting shipments.