Bed Bath & Beyond , Proposes Reverse Stock Split.
CNBC reports that the retailer's latest attempt to avoid bankruptcy was revealed
in a securities filing on April 5.
Bed Bath & Beyond is asking shareholders to approve a reverse stock split at a meeting on May 9.
This way, the company says it will have enough shares to raise $300 million in equity.
The Company may be unable to avoid bankruptcy if the Reverse Split Proposal fails to obtain shareholder approval. We need to raise equity capital to have the necessary cash resources to fund operations and service obligations under our Credit Agreement, Via securities filing.
Bed Bath & Beyond also thinks a
reverse split could boost its per-share
price and attract more investors.
We believe a higher share price could
make our Common Stock more attractive to a broader range of investors, as we believe that the current market price of our Common Stock may affect its acceptability to certain professional investors and other
members of the investing public, Via securities filing.
In particular, we believe that an
increased share price would enable us to attract additional institutional investors and investment funds who may not consider purchasing our Common Stock due to
our low trading price, Via securities filing.
CNBC reports that Bed Bath & Beyond has been talking about potential bankruptcy since January.
On April 5, the company announced that it has received a $120 million merchandise lifeline from Hilco Global to put inventory back on shelves