Bed Bath & Beyond share price suddenly surges days after bankruptcy fears

Home Economy Bed Bath & Beyond share price suddenly surges days after bankruptcy fears
Bed Bath & Beyond share price suddenly surges days after bankruptcy fears

Bed Bath & Beyond’s stock price has surged after it became the target of a meme-rally.

It’s an abrupt turnaround for the struggling firm, which last week signalled it could imminently file for bankruptcy.

On January 5, the company’s stock sank around 30 per cent as it warned that there was “substantial doubt about the Company’s ability to continue as a going concern”.

The retailer said it expected a loss of $386 million in the just-finished quarter.

But in a surprise move this morning, the share price of Bed, Bath & Beyond Inc rebounded.

It comes as speculation mounts that the home goods seller could be a potential acquisition target.

Its shares jumped sharply to US$1.62 on the rumours.

About $114 million worth of shares were exchanged by traders, nearly the entire $157 million worth of company, Yahoo! News reports.

Forums on Reddit also buzzed about the deal, helping to fuel a buying blitz likened to the phenomenon of 2020 during which the share prices of GameStop Corp and AMC surged.

Bed Bath & Beyond has battled in recent years against increased competition from online giants including Amazon.

Critics have pointed to the company’s cluttered stores and an over-reliance on discount coupons.

Most analysts are recommending that investors either “sell” or “hold” the company’s stock.

Last week, sources revealed that the company was preparing to seek bankruptcy protection in coming weeks.

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