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.