Bed Bath & Beyond Inc. shares plunged in premarket trading Wednesday after the home-goods retailer announced in a filing that it may offer, issue and sell shares of its common stock from time to time, Bloomberg News reported. Shares in the retail-trader favorite sank as much as 21% as of 6:42 a.m. New York time, erasing an earlier gain of as much as 6.5%. The company said it plans to use proceeds from any sales of its common stock to, among other things, pay down its outstanding debts. The announcement comes as investors geared up for a strategic update from the home-goods retailer, due before the opening bell. While the focus of Bed Bath & Beyond’s “business and strategic update” is unknown, it will be watched closely following last week’s report that the company was said to be looking to mortgage its prized Buybuy Baby brand. Morgan Stanley analysts have previously said that cash burn and vendor support will also be in focus at the conference call, which is scheduled for today.
