In January 2021, Wayfair, Kohl’s and Bed Bath and Beyond decided to drop MyPillow products because the company’s CEO, Mike Lindell, is a Christian and a patriot who supports President Trump.
In response, patriots boycotted the stores and instead purchased their home goods directly from MyPillow.com.
Breaking Digest previously reported that Bed Bath and Beyond announced store closures and layoffs to try and fix their struggling business.
Now this. Wayfair’s stock dropped over 80% since January 2021.
From MSN Money:
Wayfair is issuing new debt, causing some traders to feel W stock is a bad bet.
InvestorPalace reported:
In a fresh press release today, Wayfair (NYSE:W) disclosed its intention to proceed with a new convertible note offering. Certain details about the debt issuance aren’t known yet, but investors are evidently interpreting this as bearish, as they’re sending W stock lower.
Based in Boston, Wayfair provides an e-commerce platform offering furniture, décor and other home-centered products. Since these aren’t consumer necessities on the level of food and rent, Wayfair has had a tough time dealing with high inflation in 2022.
Wayfair’s investors didn’t react positively when the company announced that it plans to lay off 5% of its workforce. Some folks might think the layoffs are a good thing, but apparently the market disagrees.
Now, Wayfair’s downtrodden investors have been hit with another development that’s not going over well. Reportedly, Wayfair intends to offer a whopping $600 million worth of convertible senior notes, due 2027.
Just to clarify, convertible senior notes are basically a type of short- to medium-term debt that a company can issue, which will convert into equity (stock shares) at some point. It’s fine that Wayfair will receive a major capital infusion by issuing these senior notes. However, the company will have to pay it all back with interest.
And this leads to the frustrating part. In the press release, Wayfair didn’t disclose the interest rate on these proposed senior notes — not even a ballpark figure. Here’s what Wayfair had to say about that:
“The final terms of the notes, including the initial conversion rate, interest rate and certain other terms, will be determined at the time of pricing.”
Cancelling MyPillow was a big mistake.
1 comment
Our country, our world has gone to the dogs in what, 18 mo. We know why, what we do not get is why a demented parasite is still in office. We wake up everyday with a new method to kill us on tap.