Bed Bath & Beyond Inc. tumbled Thursday, snapping a blistering three-day rally, as speculation grows that the embattled retailer will soon file for bankruptcy.
(Bloomberg) — Bed Bath & Beyond Inc. tumbled Thursday, snapping a blistering three-day rally, as speculation grows that the embattled retailer will soon file for bankruptcy.
Shares fell 35% after surging by about 95% over the past three days. The Wall Street Journal reported that the retailer is preparing a bankruptcy filing for as soon as this weekend, following an earlier Bloomberg News report that the company was holding talks with advisers and lenders ahead of a possible Chapter 11 filing.Â
Bed Bath & Beyond is also looking at financing options to help fund itself during bankruptcy, according to people familiar with the matter.
Bed Bath & Beyond shares, which attracted the attention of meme-stock traders in early 2021, have been volatile since the beginning of the year, when the company indicated it was preparing for a potential bankruptcy filing. The retailer was among the most-mentioned companies in Stocktwits over the last day.
Its stock price had climbed in recent sessions amid elevated trading volume after ending last week at a record closing low of 24 cents. The shares were down 82% this year through Wednesday’s close.
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A spokesperson for the company, which is based in Union, New Jersey, didn’t immediately respond to an emailed request for comment before regular business hours.
(Updates for market close throughout.)
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