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

Bed Bath & Beyond

20/04/2023 14:04

** Shares of retailer Bed Bath & Beyond Inc  BBBY.O  down
~23% at 36 cents before the bell
    ** 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
    ** He adds the direction for the company now is bankruptcy,
restructuring or massive dilution but none of these options are
beneficial for existing shareholders at the moment
    ** The share movement in BBBY is part short covering, part
meme mania, Hayes said
    ** Up to Wednesday's close, stock had fallen ~82% so far
this year

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