BBBY Stock and the Hudson Bay Deal
In late January, it seemed to be all but certain that Bed Bath & Beyond was on its way to a Chapter 11 reorganization, or worse, a Chapter 7 liquidation. However, at the eleventh hour, the company could secure one last lifeline from Hudson Bay.
On Feb. 6, the retailer announced the hedge fund agreed to provide up to $1.025 billion in financing, via a complex deal involving the purchase of convertible preferred stock, options to buy convertible preferred stock, as well as options to buy common shares of BBBY stock.
Hudson Bay provided an initial $225 million when the deal was first announced. The fund has since invested an additional $135 million, with plans to provide another $100 million next month. This cash infusion is enabling Bed Bath & Beyond to keep the lights on, while it executes a turnaround.
However, while at first this may sound like promising news, most outside investors have not seen this as a cause for celebration, in fact, quite the contrary. While initially spiking by over 92% on Feb. 6, shares have since cratered, from $5.86 per share, down to just $1.15 per share today. $3B家居(BBBY.US$ $AMC Entertainment(AMC.US$
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