Bed Bath & Beyond—which raised more than $1B in an equity offering of preferred stock earlier this month that enabled the retailer to avoid bankruptcy—has notified an Ontario court that the infusion of capital will not be enough to permit the company to keep operating in Canada.
Bed Bath & Beyond Canada (BBB Canada) told the court in filings that it is "insolvent" and has "reluctantly concluded" that the equity offering did not raise enough capital to restructure its US stores and bring its Canadian business back to profitability.
The court statements, which were posted on the website of Alvarex and Marsal—consultants who were appointed by the court as a monitor of BBB Canada—also said the retailer's Canadian outlets would not be profitable if spun off as a standalone business.
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