In an eleventh-hour effort to avoid bankruptcy, Bed Bath & Beyond has announced plans to raise $1 billion through a preferred stock and warrants offering. The struggling retailer says that if can’t complete the transaction, it will “likely file for bankruptcy protection.” But if it is successful, Bed Bath will be able to make payments on its debt — it missed $28 million in bond interest payments last week — and imminently filing for Chapter 11. The company’s shares sank some 40% in early trading Tuesday as investors worried about stock dilution.
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