Home products retailer Bed Bath & Beyond (BBB) has narrowly avoided bankruptcy—for now—by selling shares to Hudson Bay Capital Management (which is unrelated to the iconic retailer Hudson’s Bay Co.). HBCM, a $19 billion (all figures are USD) hedge fund, has bought $225 million in preferred convertible shares of the New Jersey-based retailer.
In addition, private investment firm Sixth Street Partners has given Bed Bath & Beyond a $100 million credit line. BBB seeks up to $800 million to survive. Prior to the new financing, BBB had missed its payments to bond holders and had its credit lines frozen.
