US home goods store Bed Bath & Beyond has raised US$225m via an underwritten public offering of shares of Series A convertible preferred stock.
The retailer had earlier made clear that it planned the offering, which closed 7 February, in a bid to help raise more than US$1bn to avoid bankruptcy.
Bed Bath & Beyond, which sells domestic merchandise, intends to raise a further $800m by issuing Bed Bath & Beyond securities, requiring investors to purchase shares of Series A preferred stock in future instalments, assuming certain conditions are met.
Bed Bath & Beyond said in a statement that the $225m raised will be used immediately to repay outstanding borrowings under the company's credit facility.
Recent weeks have seen Bed Bath & Beyond announce staff layoffs amid rumours of bankruptcy.