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Bed Bath & Beyond revives bankruptcy preparations – Bloomberg Law

© Reuters. FILE PHOTO: A shopping cart is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly//File Photo/File Photo
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-Bed Bath & Beyond Inc is talking with advisers and lenders ahead of a bankruptcy filing that could come in the next few weeks, Bloomberg Law reported on Wednesday, citing people with knowledge of the conversations.

The company is also looking at financing options to help fund itself during bankruptcy, according to the report.

Bed Bath did not immediately respond to a Reuters request for comment.

Shares of the troubled retailer were up at 47 cents in early trading. They have plunged about 86% since the company in January said it was exploring options including bankruptcy.

Bed Bath in February planned to raise around $1 billion through an offering of preferred stock and warrants and managed to fetch $360 million from the complex deal, but later terminated the deal.

In March, it again announced plans to sell $300 million worth of its shares and warned that it might have to file for bankruptcy if the sale failed.

A Chapter 11 bankruptcy filing could come before April 26, the deadline by which Bed Bath seeks to raise the funds, Bloomberg reported on Wednesday. The decision for filing is not final and plans could change, the report said.

Once considered a category killer in home goods, the Union, New Jersey-based company has seen demand slump in recent years as its merchandising strategy to sell more store-branded products flopped.

Bed Bath said last month it was seeking shareholder approval for a reverse stock split in the range of 1-for-5 to 1-for-10 ratio. Earlier in April, its board urged shareholders to approve the split, and said that if the plan fails, bankruptcy would be imminent.

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