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Bloomberg reported Wednesday that Bed Bath & Beyond (NASDAQ:BBBY) might look to the private credit market to boost liquidity.
With the retailer struggling and burning through cash, Bloomberg said its sources told them the company’s management spoke to lenders regarding a potential new asset-based credit line.
Bed Bath & Beyond reported it had $107.5 million in cash and cash equivalents at the end of May, significantly below the $1.1 billion a year earlier.
However, Bloomberg said the talks are preliminary, and the company is also looking at other options.
Bed Bath & Beyond is struggling to gain any momentum and has burned through significant amounts of cash, with net sales also declining, down 25% year-over-year in the first quarter and inventory rising. In addition, the company’s CEO stepped down in June.
Furthermore, supply chain issues and inflation hitting consumer wallets have also weighed on the stock. As a result, despite its 2% gain Wednesday, the company’s shares have fallen 79.25% in the last 12 months.
