Bed Bath & Beyond falls on report of bankruptcy filing expected this weekend

Bed Bath & Beyond

20/04/2023 17:51

(Updates)
    ** Shares of retailer Bed Bath & Beyond Inc  BBBY.O  fall as
 much as 31% to 32 cents 
    ** Stock on course to break three-day gaining streak
    ** On Wednesday, Wall Street Journal reported the company 
is preparing to file for bankruptcy as early as this weekend
    ** BBBY's shares down 81% since the retailer said in January
that it was exploring options including bankruptcy
    ** In April, the board urged shareholders to approve a
reverse stock split, saying that if the plan fails, bankruptcy
would be imminent
    ** "Historically, reverse splits are temporary band-aids
that never work out well," says Thomas Hayes, chairman and
managing member at investment firm Great Hill Capital
    ** Hayes adds the direction for the company now is
bankruptcy, restructuring or massive dilution but none of these
options are beneficial for existing shareholders, currently 
    ** Stock movement in BBBY is partly short covering, and some
meme mania, Hayes said
    ** Stock has fallen ~87% so far this year

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam))