Bed Bath & Beyond said the three-year $850 million credit facility, which is asset-backed, will support the group's balance sheet as it prepares to re-boot operations in the wake of the worst of the coronavirus pandemic. Bed Bath & Beyond said some 95% of its existing store fleet will be opened by the end of this week, with nearly all of its stores up-and-running by early July.
"We have been delighted to welcome our customers back as we re-opened hundreds of stores in the last few weeks. At the same time, we are pleased with the response from our loyal customers to our new BOPIS (buy online, pick up in-store) and contactless Curbside Pickup shopping experience," said CEO Mark Tritton. "These are important, targeted investments that strengthen our service offering and competitive position for the long term."
"While the impact of the COVID-19 situation has been felt across our business, we have taken measured, purposeful steps to maintain our financial flexibility," he added. "We ended our fiscal 2020 first quarter with approximately $1.2 billion in cash and investments, and we now have access to additional liquidity through our new ABL facility."
Bed Bath & Beyond shares were marked 3% higher in early trading Monday to change hands at $10.13 each, a move that would still leave the stock nursing a year-to-date decline of around 41.5%.
The company noted that the "unparalleled challenge of the COVID-19 pandemic has significantly impacted" operations over its fiscal second quarter, which began on March 1, prompting store closures, cost cutting and staff furloughs.
The pandemic also blunted the momentum of a better-than-expected holiday quarter, which included profits of 28 cents per share on sales of $3.1 billion. Bed Bath & Beyond scrapped its fiscal 2021 earnings guidance, as well, and suspended plans to spend $600 million on share buybacks, dividends and debt reduction.