Bed Bath & Beyond has announced that it is looking to approve a reverse stock split, a move that sent its shares plummeting by 13 percent.
The company said it is planning to hold a special meeting of shareholders on March 27 in an attempt to achieve the approval, seeking to split at a ratio in the range of 1-for-5 to 1-for-10, with the ratio to be determined at the discretion of the board.
In a regulatory filing, Sue Gove, president and CEO of the retailer, said: “Our proposal for a reverse stock split will enable us to continue rebuilding liquidity to execute our turnaround plans and better position the company financially.
“We look forward to engaging with shareholders and continuing to provide meaningful updates as we progress with our strategy.”
In the filing, the company affirmed that the plan would not have an effect on the value of the business or a shareholder’s ownership in the company, as well as the company’s business operations.
The announcement comes almost one month on from when Bed Bath & Beyond said it was hoping to raise one billion dollars through an offering of preferred stock and warrants.
So far, it said it has raised 360 million dollars out of its planned total.
In January, the company reported a 33 percent loss in its net sales for Q3 2022 and confirmed it was mulling a potential bankruptcy filing.
Over 2022, the retailer closed around 150 of its stores and had noted there was “substantial doubt” as to whether it was able to continue.