(Add actions to paragraph 2)
By Chibuike Oguh
Aug 24 (Reuters) – Bed Bath & Beyond Inc is nearing final terms with investment firm Sixth Street which would provide the homewares chain with a loan of around $370 million, a person close to it said on Wednesday folder.
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 that it was working with financial advisers and lenders to strengthen its balance sheet, an admission it needed to raise capital to stay afloat.
He had long-term debt totaling $1.38 billion and only $107.5 million in cash at the end of May.
Sixth Street has also provided capital to chain owner DSW Designer Shoe Warehouse Designer Brands, clothing retailer Maurices and department store operator JC Penney in the sector.
The beleaguered retailer also made headlines with billionaire investor Ryan Cohen selling his entire 9.8% stake five months after hoarding it and pushing for changes, sparking anger among retail investors. .
In recent days, Bed Bath & Beyond has also ousted its boss, changed some directors and said it would consider getting rid of its baby products division.
The Wall Street Journal was first to report the news. (Reporting by Chibuike Oguh in New York and Praveen Paramasivam in Bengaluru; Editing by Arun Koyyur)