Investors are looking to get their last shots in before the retail chain folds.
The last few years have been very difficult for retail chain Bed Bath & Beyond, which has seen multiple store closures and layoffs in the face of pandemic-induced financial difficulties and a general lack of customer interest. Investors have been watching the chain carefully recently for what is viewed as the inevitable moment when they declare bankruptcy. However, the chain hasn’t thrown in the towel yet, prompting some investors to make one last run for it.
During pre-market trading this morning, shares in Bed Bath & Beyond rose as high as 75% before evening out at around 40% up. The chain is slated to unveil their quarterly earnings in a call this week, and investors want to get in one last buy and sell before a potential bankruptcy declaration.
Bed Bath and Beyond warned today that the company has serious doubts about its future and may have to file for bankruptcy. The home goods chain announced plans last summer to lay off about 20 percent of its corporate employees and close around 150 stores. pic.twitter.com/owmB0qN8bU
— CBS Evening News (@CBSEveningNews) January 6, 2023
Last week, when asked by Yahoo Finance about the potential of bankruptcy, Bed Bath & Beyond spokesperson Julie Strider said, “Since initiating Bed Bath & Beyond Inc.’s comprehensive turnaround plan at the start of the third quarter, which included financial actions to improve our balance sheet and cash flows, we have been working with strategic advisors to evaluate all paths to regain market share and enhance liquidity, our stated priorities. Such paths may include restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures. No determinations have been made as of this time.”