![]() The post Say Goodbye to Bed Bath & Beyond Stock appeared first on InvestorPlace. It doesn’t matter if you have $500 or $5 million. ![]() Wall Street Titan: Here’s My #1 Stock for 2023 The Best $1 Investment You Can Make Today More From InvestorPlaceīuy This $5 Stock BEFORE This Apple Project Goes Live Thomas Niel, contributor for, has been writing single-stock analysis for web-based publications since 2016. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. With this, stay away is all there’s left to say with BBBY stock. It’s been a long time coming, but Bed Bath & Beyond’s fate is now fully sealed. Once the liquidation is complete, and creditors are (partially) repaid, there will be absolutely nothing left. “Beyond” that, it won’t be long until BBBY will make its last big leap into the stock market graveyard. ![]() Stocks typically decline in price when moving down to the OTC market from a major exchange. This event will probably drive the next big drop for Bed Bath & Beyond shares. Once delisted, trading in the stock will move to the over-the-counter (or OTC) market. As InvestorPlace’s Larry Ramer recently wrote, the company expects to soon receive a delisting notice from Nasdaq which it intends to contest. It won’t be long before BBBY stops trading on the Nasdaq exchange. However, a gradual drop toward much lower prices is undoubtedly in store in the weeks and months ahead. That’s not to say that shares will head immediately to near-zero prices. With this, do not count on there being something left over for BBBY shareholders. With the book value of its assets totaling just $4.4 billion, creditors are likely to take a haircut. The company has $5.2 billion in liabilities. It practically guaranteed a similar total wipeout outcome with BBBY stock. In the end, creditors took ownership, with common shareholders receiving nothing. Revlon played out like your standard Chapter 11 restructuring. On April 23, 2023, after failing to pay off stock, declining sales, high debt, and years of struggling, Bed Bath & Beyond, Buy Buy Baby, and 73 affiliated. Traders bid up the cosmetics company after its Chapter 11 bankruptcy, on the view that it was going to be the “next Hertz.” Unfortunately, this did not happen. ![]() Last year’s Revlon (OTCMKTS: REVRQ) bankruptcy is a good example. A big reason for this was the outcome for common shareholders with Hertz Global Holdings (NASDAQ: HTZ), which entered bankruptcy in 2020, and left in 2021, thanks to the post-pandemic travel recovery.īut similar bankruptcy bets have been busts. In recent years, retail traders have become more active in bankrupt stocks. Or, if they know that this is a liquidation scenario, they erroneously believe shareholders will get something out of it. The stock closed at a record $80.48 on that day, after adjusting for four 2-for-1 stock splits along the way.Because BBBY stock continues to trade for more than zero, it’s clear many speculators are not aware of this. With a devoted customer base, the company firmly established itself as a household name, and its stock hit an all-time high of $80.82 on Jan. For many years, Bed Bath & Beyond enjoyed great success by offering name brands at a discount. This, however, is a far cry from the company’s Nasdaq heyday, when it traded under the ticker BBBY. Trading under the ticker BBBYQ, the stock closed at just under 7.9 cents on Friday after 8.82 million Bed Bath & Beyond shares changed hands. Related: Why investors gamble on shares of bankrupt companies - Bed Bath & Beyond, for example Activist investor Ryan Cohen, for example, was still mentioned in social-media chatter about Bed Bath & Beyond despite cashing out his entire stake in the company last year. Even with liquidation sales under way at hundreds of stores, the stock continued to attract attention while trading over the counter. In a last-gasp bid to stave off bankruptcy, Bed Bath & Beyond announced equity offerings in its final months this year, raising more than $400 million.īut the beleaguered company filed for Chapter 11 bankruptcy protection in April and was subsequently delisted from the Nasdaq exchange. Related: Bed Bath & Beyond: from home-goods behemoth to bankruptcy Nonetheless, shares of the embattled retailer skyrocketed last year, driven by the Wall Street Bets crowd on Reddit. companies have gone bankrupt in 2023 so far than all of 2022 or 2021īed Bath & Beyond’s bankruptcy earlier this year came after a troubled few years marked by strategic missteps, cash burn, challenging underlying business trends and the impact of the COVID-19 pandemic.
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