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Bed Bath & Beyond Again Extends Convertible Exchange Deadline

Bed Bath & Beyond (US:BBBY) shares fell 2.52% on Tuesday after management again extended the closing date of its convertible debt exchange program to Jan. 4, 2023.

The original deadline was Dec. 5, but the company later extended it to Dec. 19. On Dec. 19, the company had about  117.3 million common shares outstanding, with a cash and cash equivalents position of $439.5 million and long-term debt of nearly $1.18 billion.

BBBY’s shares have plummeted more than 82% since the start of the year. In addition to internal concerns, the company faces macroeconomic headwinds, including inflation and rising interest rates.

In recent years, the company has faced internal struggles, including a failed overhaul by prior management that replaced national brands with private-label goods, leading to a steep sales slide. According to a report by analytics firm DataWeave Inc., more than 40% of Bed Bath & Beyond’s products were out of stock in October, nearly double the level seen in the first half of 2022.

Management has been working to restore relations with suppliers by making overdue payments. The company is also facing severe macroeconomic pressures, with the University of Michigan’s consumer sentiment index near all-time lows and credit card debt at an all-time high, according to the Federal Reserve.

Activist investors have stalked the company for years, and recently the shares entered the meme stock realm.

In 2019, three activist investors, Legion Partners Asset Management, Macellum Advisors, and Ancora Advisors, disclosed stakes in the company and called for changes, including the removal of the CEO and the sale of underperforming assets. The company responded with a restructuring plan and a new CEO.

Last year Petrus Advisors, another activist, also criticized management and called for the company to consider a sale or merger.

This article originally appeared on Fintel

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