By Chibuike Oguh
(Reuters) -Bed Bath & Beyond Inc is nearing final terms with investment firm Sixth Street that would provide the home goods chain a loan of around $370 million, a person familiar with the matter said on Wednesday.
The company did not immediately respond to a request for comment from Reuters. Shares fell 2% in extended trading after closing 18% higher on Wednesday.
Earlier this month, Bed Bath said in a regulatory filing it was working with financial advisers and lenders on strengthening its balance sheet, an admission that it needs to raise capital to stay afloat.
It had long-term debt totaling $1.38 billion and only $107.5 million in cash as of May end.
Sixth Street has also provided capital to DSW Designer Shoe Warehouse chain owner Designer Brands (NYSE:DBI), clothing retailer Maurices and department store operator J.C. Penney in the sector.
The embattled retailer has also made headlines with billionaire investor Ryan Cohen selling his entire 9.8% stake five months after amassing it and pushing for changes, drawing the ire of retail investors.
Bed Bath & Beyond (NASDAQ:BBBY) in recent days has also ousted its top boss, changed some board directors and said it would explore shedding its baby products division.
The Wall Street Journal first reported the news.