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HomeMarketBed Bath & Beyond stock slides 31% premarket to erase some of...

Bed Bath & Beyond stock slides 31% premarket to erase some of Monday’s rally

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Bed Bath & Beyond Inc. stock
slid 31% in premarket trade Tuesday, pulling back from strong gains Monday that saw it gain 92% in a move that swept up other meme stocks. The company said after the bell it plans to sell convertible preferred stock as well as warrants to purchase common shares and convertible preferred stock. The company expected to raise at least $225 million in the sale, but hoped for more than $1 billion, according to a regulatory filing. Late Monday, the Wall Street Journal reported that the company had received investor commitments to raise $225 million of equity capital initially, with the rest of the more than $1 billion offering coming later, citing people familiar with the matter. In a filing with the Securities and Exchange Commission on Monday, Bed Bath & Beyond disclosed that JPMorgan Chase & Co. JPM, +0.59% and other creditors had agreed to work with the retailer if it could raise the money. The company has said it may have to file for bankruptcy and recently disclosed that it was in default on loans. The stock has fallen 64% in the last 12 months, while the S&P 500
has fallen 8%.


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