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Mattress Tub & Past’s inventory falls as retailer plans to challenge shares to repay some debt

Signage outdoors a Mattress Tub & Past retail retailer in New York, Aug. 25, 2022.

Gabby Jones | Bloomberg | Getty Photos

Bed Bath & Beyond stated Monday it will challenge shares to a few of its bondholders in change for paying off a small portion of its roughly $1 billion debt load.

Mattress Tub & Past’s shares fell greater than 8% at about $3.60 on Monday following the announcement of its inventory dilution. The inventory, which is down greater than 70% to this point this 12 months, hit a brand new 52-week low Monday.

Along with its mountain of debt, the troubled retailer has recently been grappling with a management shakeup, strained relationships with suppliers and the aftermath of a meme-stock frenzy fueled by activist investor Ryan Cohen, who later bought his shares.

Mattress Tub & Past has greater than $1 billion in unsecured notes with maturity dates unfold throughout 2024, 2034 and 2044.

On Monday, Mattress Tub & Past said it would issue 11.7 million in inventory to repay $123 million – about $69 million of the 2024 notes, $5.8 million of the 2034 notes and $48.2 million of the 2044 notes. The unsecured notes have all been buying and selling beneath par.

In August, Mattress Tub & Past introduced new debt funding that was anticipated to provide it some breath room, particularly with suppliers.

The retailer has been combating to win again prospects forward of what might be a make-or-break holiday season.

Earlier this month, the corporate’s chief customer officer resigned, the newest in a listing of management modifications for Mattress Tub & Past. Earlier this 12 months, the board pushed out Chief Govt Mark Tritton and Chief Merchandising Officer Joe Hartsig. In the meantime, its chief accounting officer resigned and the corporate eradicated the chief working officer and chief shops officer roles. In September, CFO Gustabo Arnal died by suicide.

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