Takeaways from BBBY strategic update
- They secured financing commitments for more than $500 million of new financing, including its newly expanded $1.13 billion asset-backed revolving credit facility ("ABL facility") and a new $375 million "first-in-last-out" facility ("FILO facility") which means imminent bankruptcy is off the table.
- They reduced capital spending from $400 million to $250 million.
- They will close 150 lower-producing Bed Bath & Beyond banner stores.
- They won't sell BuyBuyBaby to save their necks as of now.
- They may issue up to 12 million shares to raise capital
- They still looking for a CEO
Financial Update (Interim)
At this time, the Company is providing the following interim financial update for the second quarter of fiscal 2022 ended August 27, 2022:
– Net Sales of approximately $1.45 billion
– Comparable Sales decline of approximately 26% compared to the second quarter of fiscal 2021
– Free Cash Flow usage of approximately $325 million
Additionally, the Company is providing the following interim financial update for its fiscal 2022 expectations:
– Comparable Sales decline in the 20% range driven by improvements in the second half of fiscal 2022 versus the first half of fiscal 2022
– Adjusted SG&A expense approximately $250 million below last year reflecting cost optimization actions occurring in the second half of fiscal 2022
– Capital expenditures of approximately $250 million versus the Company's original plans of approximately $400 million
Submitted August 31, 2022 at 01:42PM by slimelmo91
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