The home-goods retailer is turning into a penny stock after Thursday’s 8% loss in its share price.
Bed bath & Beyond tumbled to fresh lows on Thursday after it asked shareholders to approve a reverse stock split. The management isn’t putting a lot of options on the table – if the maneuver is not approved, Bed Bath said it will likely file for bankruptcy, sticking to its warning in late March.
The reverse split filing wants shareholders to sign off on a yet-to-be-determined stock slicing, anywhere between 1 for 10 to 1 for 20 shares. The exact split ratio will become clear on May 9. Now, the struggling home-goods retailer needs to make sure it stays in business.
Shares of Bed Bath & Beyond dropped more than 8% on Thursday. The company’s valuation is down more than 99% from its peak in early 2021 when the stock was changing hands above $35 a pop. Today, only a fraction of that has survived, as shares are trading near 30 cents.
