HomeFinancial MarketsBed Bath & Beyond Shareholders to Receive “Zero Recovery” Under New Reorganization...

Bed Bath & Beyond Shareholders to Receive “Zero Recovery” Under New Reorganization Plan

Struggling retail chain Bed Bath & Beyond has presented a new reorganization plan to New Jersey’s U.S. Bankruptcy Court this week, under which the company’s shareholders would receive “zero recovery.”

Bed Bath & Beyond filed for Chapter 11 bankruptcy back in April after several failed attempts to get out of debt and improve its business. The company is in the process of closing down its stores and liquidating inventory. It also sold its intellectual property, including assets related to the Buybuy Baby brand.

Despite all of this, some investors still haven’t given up on Bed Bath & Beyond stock (BBBYQ). The company’s shares have climbed from $0.08 per share at the time of the bankruptcy filing to $0.38 per share at one point in July. BBBYQ is currently trading at the price of $0.32.

If Bed Bath & Beyond’s plan goes through, the shares would be worthless. It calls for the stock to be “canceled, released and extinguished,” and the shareholders would be able to claim any recovery in the future. The plan confirmation hearing is reportedly expected to be scheduled for September.

Bed Bath & Beyond is expected to completely shut all of its stores by the end of July. However, don’t expect the name to go away. Overstock, an internet retailer that bought Bed Bath & Beyond intellectual property, will take on the name for its website and mobile app.

Marriott Projects Revenue Growth Amid Resilient Travel Demand

Marriott International forecasted on Wednesday that 3% to 6% growth in its annualized global revenue per available room for the two years ending 2025 as the...

Dollar and Stocks Steady as Bonds Ease From Record Highs

The U.S. dollar and stocks in New York stabilized on Wednesday, while U.S. Treasury Yields retreated from their 16-year high, easing pressure on the...

New Home Sales Plummet in August

Sales of new U.S. single-family homes plunged in August as the 30-year mortgage rate rose past 7%, thereby discouraging would-be buyers. According to data...