Bed Bath & Beyond stock plunges 7.0% as company closes about 150 stores

Bed Bath & Beyond (BBBY.US) stock fell over 7.0% on Friday after struggling home goods retailer announced list of approximately 150 stores which plans to close in order to improve its financial condition. The company is also slashing its workforce by 20%. It estimated those cuts would save $250 million in the current fiscal year. 

Additionally BBBY secured more than $500 million in new financing and is planning to revert to its original strategy of focusing on national brands, instead of pushing its own store labels. 

According to the regulatory filing, the company takes into consideration launching an at-the-market offering for up to 12 million shares of its common stock. The proceeds would be used for several corporate purposes, including repurchasing or repaying some of the company’s debt.

Bed Bath & Beyond (BBBY.US) stock resumed downward move this week, however scales of declines are rather limited. Key support to watch lies around $4.00, where 2020 lows are located. However if investors sentiment improves, price may be heading towards resistance at $14.00, which coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5