On March 24, 2023, it was reported, Bed Bath & Beyond has a short amount of time to rally its stock price under an amended agreement with HBC Investments. In a filing with the SEC this morning, the retailer announced the hedge fund has agreed to temporarily lower the stock price threshold to $1.00. That stock price waiver will expire on April 3. In February, BBB entered into an agreement with Hudson Bay Capital as part of its financing strategy to generate through an offering of convertible preferred stock and warrants. "Hudson Bay Capital has essentially agreed to make sure the troubled retailer will sell roughly $1 billion in shares as it tries to avoid bankruptcy," the New York Times reported when the agreement became public. Bed Bath & Beyond's stock has been trading below $1.00 since the close of trading on March 17. On March 20, 2023, it was reported, Bed Bath & Beyond is asking shareholders to approve a move that it believes will gin up interest in its stock. The company is planning a special meeting of shareholders on March 27 to support a reverse split of BBBY common stock, which as a par value of $0.01 per share, in the range of 1-for-5 to 1-for-10. The actual ratio will be decided by the board, Bed Bath & Beyond said in its filing with the SEC. "The board believes that the reverse stock split will likely result in a higher per-share trading price, which is intended to generate greater investor interest in the company," the company stated. BBB president Sue Gove said the reverse split will allow the company to continue rebuilding liquidity, better position itself financially and pursue its turnaround plans. "We look forward to engaging with shareholders and continuing to provide meaningful updates as we progress with our strategy," she added. The virtual shareholder meeting is subject to cancellation if BBB's board decides the split is no longer in the best interests of the company, the SEC filing noted. The retailer embarked on a mission to raise $1 billion from a public equity offering in February and as of March 8 had pulled in a cumulative total of $360 million. A reverse stock split would not immediately affect impact Bed Bath & Beyond's market capitalization, the company noted. "However, if our trading price increases or declines over time following the reverse stock split, we will have a higher or lower market capitalization depending on that trading price," it said in its filing.
On March 22, 2023, it was reported, Walmart, the American retail corporate giant, is set to close down several stores this year, stating that some of their locations are underperforming financially. The decision was unfortunately made when certain stores failed to meet their financial expectations, following the morbid trend of Walmart continuously closing down a handful of locations each year. Walmart had already announced ten stores will close this year in Washington DC, Illinois, New Mexico, Florida, Oregon, and Wisconsin, including two "Pickup" locations in Illinois and Arkansas, an experimental project Walmart has undertaken where they have pick-up only stores in select states. Now Walmart this week has quietly announced even more closures including in South Bend, Brooklyn, Oahu, Everett, Minnesota, and more.
On March 20, 2023, it was reported, The Franchise Group, Inc., parent company of Top 100 furniture retailers American Freight and Badcock Home Furniture & more, has received an unsolicited non-binding proposal to acquire all of its outstanding common stock. The proposal, from an unnamed party, sets the cash price per share at $30. The closing price on Franchise Group (FRG) shares was $22.75 on Friday. In a release announcing the proposal, which is subject to certain conditions, Franchise Group said its board of directors "will carefully evaluate the proposal to determine the course of action that it believes is in the best interest of the company and FRG stockholders. The company makes no assurance that the proposal will result in a transaction." In its most recent earnings report, FRG posted gains in revenue but losses in income for the fourth quarter and its 2022 fiscal year. Along with its furniture company holdings, which includes lease-to-own brand Buddy's Home Furnishings, Franchise Group owns Pet Supplies Plus, Wag N' Wash, The Vitamin Shoppe and Sylvan Learning. Among all its brands, the company operates 3,000 locations that are either company-run or operated under franchise or dealer agreements.
On March 14, 2023, it was reported, Tuesday Morning has nearly doubled its debtor-in-possession (DIP) financing. The off-price home goods specialist, which entered Chapter 11 bankruptcy last month, has entered into a DIP agreement with Gordon Brothers affiliate 1903 Partners. The new $12.5 million brings the company's total DIP commitments to $27 million. In announcing the deal, Tuesday Morning said that additional funding "provides the company with continued runway to explore a sale and value-maximizing options." As is typical with DIP financing, agreement requires the company to meet agreed budget and bankruptcy milestones by agreed upon dates. Andrew Berger, Tuesday Morning's CEO and director, said the partnership with Gordon Brothers would help save jobs, serve customers and maximize value. "Notably, this DIP clears the path for the company to continue transforming our operations through the bankruptcy process. In addition to providing liquidity, partnering with Gordon Brothers will allow us to leverage the team's deep knowledge and experience in the retail sector," he added. Tuesday Morning is in the process of closing more than 60% of the 487 stores it was operating when it went into bankruptcy on Feb. 14. When the closings are completed, the chain will be left with 218 doors.
