HomeTop U.S. NewsBed Bath & Beyond Reportedly Preparing for Bankruptcy Filing

Bed Bath & Beyond Reportedly Preparing for Bankruptcy Filing

It appears that the retailer Bed Bath & Beyond failed in its attempts to avoid bankruptcy. According to a report by Wall Street Journal, the company is currently “preparing” to file for Chapter 11 and is expected to do so as early as this weekend.

Bed Bath & Beyond has been flirting with bankruptcy since January as a result of poor sales and thumbing stock. Last month, the company launched a stock-sale effort in an attempt to raise $300 million, saying that missing the mark would force Chapter 11 filing. It also asked shareholders for approval to initiate a reverse stock split in the range of 1-for-5 to 1-for-20 but failed to get it in time.

It became clear in early April that Bed Bath & Beyond would fail to clear the mark. They raised just $48.5 million by April 10th, according to WSJ, and were left with 178 million shares they could sell. Even if they cleared out all of them, they would still only get $70-$80 million considering the stock’s low value.

After Wall Street Journal’s report came out, Bed Bath & Beyond stock (BBBY) saw a slide of almost 20% to drop to $0.38 per share. The company’s shares have now lost 83.77% of their value since the start of 2023.

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