BBBY - Can Bed Bath & Beyond Succeed Where Hertz Failed?
The stock market was quiet early Tuesday morning, as investors seemed ready for a mixed opening on Wall Street. Futures on some stock indexes were down while others were up, but none made particularly large moves. Many market participants seemed content to wait for comments from Federal Reserve chair Jerome Powell, who will speak at a Washington gathering early this afternoon.
With few other distractions, the latest news from struggling Bed Bath & Beyond (NASDAQ: BBBY) got an inordinate amount of attention from investors Tuesday morning. The home goods retailer made a move to raise capital in a manner that raised some controversy, given the company's own comments about its financial situation. Bed Bath & Beyond's attempt to get cash from investors recalled memories of a failed effort from Hertz Global Holdings at a similarly troubled time in its past.
Bed Bath & Beyond filed a prospectus with the U.S. Securities and Exchange Commission (SEC) late Monday, setting out its intent to do a stock offering to raise capital. A subsequent filing Tuesday morning gave further details, including an update that highlighted some of the special risks involved with the prospective offering.
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Can Bed Bath & Beyond Succeed Where Hertz Failed?