HomeFinancial MarketsBed Bath & Beyond to Seek Approval for Reverse Stock Split

Bed Bath & Beyond to Seek Approval for Reverse Stock Split

Struggling retailer Bed Bath & Beyond is making another significant move in an attempt to avoid bankruptcy. In a press release made on Friday, the company announced its plans to seek approval from its shareholders for a reverse stock split.

The proposed split is set to be in the 1-for-5 to 1-for-10 range, with the final ratio set to be determined by the Bed Bath & Beyond board. The company hopes that the move will result in a “higher per-share trading price” and increase the interest of investors in its stock.

“Our proposal for a reverse stock split will enable us to continue rebuilding liquidity to execute our turnaround plans and better position the Company financially,” said Sue Gove, the President & CEO of Bed Bath & Beyond. “We look forward to engaging with shareholders and continuing to provide meaningful updates as we progress with our strategy.”

Once a prime destination for domestic merchandise, Bed Bath & Beyond struggled in recent years, dealing with poor sales and failure to adjust to the increased competition. The company has been reportedly considering bankruptcy for a while now but has delayed the final decision until it exercises all other options.

Bed Bath & Beyond stock dropped almost 18 percent in after-hours trading, sliding from a close price of $1.03 per share to $0.85 later in the day. The company’s shares have lost more than 95 percent of their value in the past year. 

Tesla Q3 Deliveries Miss Estimates

Electric Vehicle (EV) automaker Tesla missed market estimates for its deliveries in the third quarter. After reducing production because of planned factory shutdowns, the...

Higher Rates Affecting Profits, Goldman Analysts Warn

Goldman Sachs Group Inc. analysts have warned that rising interest rates are starting to have a detrimental effect on U.S. corporate profits. The strategists,...

Futures Steady After U.S. Government Avoids Shutdown

Equity futures remained relatively unchanged on the New York Stock Exchange on Monday morning after U.S. lawmakers narrowly avoided a government shutdown. Members of...