American retailer Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares slumped 37% on Tuesday, following the publishing of a plan to raise around US$1bn through a new stock offering.
Its shares fell to US$3.09 as investors fled on the news of the new offering, a 91% crash from a high of US$34.31 at the height of the meme stock frenzy in early 2021.
Bed Bath & Beyond had a market cap of US$687.5 on Monday, with its attempt to secure US$225mln from a share offering and US$800mln later in hoped-for instalments.
The stock price has fallen this year after the retailer reported sales had fallen nearly 30% year on year in the third quarter, also warning cash was running low and bankruptcy was on the cards.
Wedbush analysts suggested the offerings were a “last gasp” from the embattled retailer, adding its chance of raising enough to survive was “low”.