Bed Bath & Beyond Inc. has found a financing source to shore up its liquidity as it tries to weather recent missteps, the Wall Street Journal reported. The company on Tuesday told prospective lenders that it has selected a lender to provide a loan following a marketing process conducted by JPMorgan Chase & Co. A loan deal would provide liquidity and give vendors confidence they can continue to ship goods to Bed Bath & Beyond, which is fighting to correct missteps from an ill-fated push into private-label brands. The retailer had been seeking about $375 million to pad its cash levels and help pay down existing debt, the Wall Street Journal previously reported. The size and terms of the final deal weren’t immediately clear on Tuesday. The company’s shares skyrocketed last week on a burst of interest from individual investors but have been sliding since billionaire activist Ryan Cohen announced his exit from the stock and sold off his 10% stake. The falling share price narrowed the options available to Bed Bath & Beyond to build liquidity, stanch its cash bleed and ensure continued shipments from suppliers. The company has signaled it has to raise cash. While it has said it should be fine for a year, its business remains in decline. The company used up more than $500 million in cash in the latest quarter ended in May.
