Bed Bath & Beyond (NASDAQ:BBBY) warned it may not survive. The market capitalization of BBBY stock fell by 40% in 24 hours.
The release, a “business update” from interim CEO Sue Gove, expressed optimism about recent corporate moves, but “concluded that there is substantial doubt about the Company’s ability to continue as a going concern.” A bankruptcy filing .
Bankrupt Beyond the Meme
The home goods retail chain took out a . But it’s unclear if the lender, investment firm Sixth Street, is willing to offer more. recently expired.
Bed Bath & Beyond closed 37 stores in the last year and appears
. Gove said the company wants to “grow our digital and omni-capabilities.” In other words, its goal is to sell more online while strengthening the balance sheet.
While failing to become a curated home for store brands under former CEO Mark Tritton, BBBY attracted retail investors as a meme stock. This included Gamestop (NYSE:GME) chairman Ryan Cohen, who exited his position last year.
Since Gove replaced Tritton in mid-year, Bed Bath & Beyond has been hit by rising interest rates, fretful suppliers and nervous consumers. It’s a triple whammy threatening to shutter many other retail firms.
What Happens Next for BBBY Stock?
BBBY won’t be the only retailer to seek bankruptcy protection in the next few months. Investors should check portfolios for stocks that seem “too cheap” on a price-to-sales basis. They may not be around much longer.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
