Shares of Bed Bath & Beyond, a favorite with the meme stock crowd that has surged higher this month, jumped nearly 15% on Wednesday after the company reportedly secured a much-needed loan deal to shore up its balance sheet and pay down debt.
Bed Bath & Beyond’s stock rose almost 15% to $10 per share, rebounding from last week’s losses as investors cheered a report from the Wall Street Journal that the company has successfully lined up financing to boost liquidity.
The home goods retailer, which has faced inventory struggles and declining sales, had been seeking around $375 million to boost its cash levels and pay down existing debt, though final terms of the deal are not yet clear, according to the journal.
Bed Bath & Beyond shares surged as retail investors celebrated the news, with the stock being by far the most popular mention in Reddit’s WallStreetBets chat room on Wednesday, according to data provider Quiver Quantitative.
The good news comes after Wall Street analysts had been warning for months that the retailer faced “pressing” issues like high cash burn and was in desperate need of new financing.
Still, shares have been skyrocketing this month as meme stock traders from social media sites like Reddit pile into the stock, which at one point was up 300% for the month of August, before paring back gains somewhat.
Bed Bath & Beyond shares did drop again sharply last week, however, after billionaire activist investor and GameStop chairman Ryan Cohen announced he would sell his roughly 10% stake in the company.