Bed Bath & Beyond Warns About Bankruptcy, Again

Bed Bath & Beyond (BBBY) shares tumbled to an all-time low as the struggling retailer announced a new stock sale and again warned that it could face bankruptcy.

The company said in a regulatory filing that it was putting up for sale $300 million worth of its shares in an "at-the-market" offering program. Simultaneously, Bed Bath & Beyond terminated its previous public equity offering and outstanding warrants for Series A Convertible Preferred Stock that it made just last month. That sale, which the company had hoped would raise $1 billion, brought in $360 million.

In the filing, Bed Bath & Beyond explained, "If we do not receive the proceeds from the offering of securities covered by this prospectus supplement, we expect that we will likely file for bankruptcy protection." The company had also said in January that bankruptcy could be coming because it was running out of cash as sales slumped.

CEO Sue Gove indicated that the actions taken today "have enabled us to create the necessary financial runway to begin restoring our iconic Bed Bath & Beyond and buybuy BABY businesses."

Q4 Guidance

In addition, the company provided guidance for its fiscal fourth quarter that ended Feb. 28. It estimated revenue of $1.2 billion, short of analysts' forecasts. Bed Bath & Beyond also projected that comparable sales were down by 40% to 50%, and it would have a continuation of operating losses and modest free cash flow usage. The retailer is scheduled to release its financial report at the end of April.

Shares of Bed Bath & Beyond lost 26%.