Bed Bath & Beyond surges as meme traders pour in amid reports the ailing retailer is prepping for bankruptcy
Nam Y. Huh/AP Photo
- Bed Bath & Beyond shares surged on reports the firm could soon file for bankruptcy.
- Meme traders pounced on the stock, sending shares up 54% on Wednesday.
- The retailer could file for bankruptcy before the end of the month, Bloomberg reported.
Bed Bath & Beyond shares surged amid reports the struggling home-goods retailer is now preparing for bankruptcy.
On Wednesday, shares were up 54% at $0.52, shortly after sources told Bloomberg that Bed Bath & Beyond was in talks with advisers and lenders to reorganize its finances.
The company could file for Chapter 11 bankruptcy before April 26, Bloomberg reported.
The meme stock has been on a roller coaster over the past year amid its struggle to stay afloat. Though it soared during the meme stock craze of the pandemic, shares notched their second-worst performance ever in February this year, plunging 50% as the retailer tried to square its finances amid rising debt and dismal sales.
Executives rolled out an ambitious plan to raise $1 billion by issuing convertible securities and warrants, but the company only made $360 million from that deal before scrapping it, Reuters reported.
Last month, the company said it would sell another $300 million worth of stock in a last-ditch effort to avoid insolvency.
Bed Bath & Beyond said in an SEC filing last year that it had "serious doubt" it could continue to stay in business.
Meanwhile, over a thousand engaged couples have dropped Bed Bath & Beyond from their registries, Bloomberg reported this month, due to speculation that the company may not be able to make it through this year's wedding season.