BBBYQ Stock Alert: Get Ready for Liquidation After Sept. 12

Source: Mark Roger Bailey / Shutterstock.com

Bed Bath & Beyond (OTCMKTS:BBBYQ) stock has fallen by about 50% this month and 90% so far in 2023 as its shareholders prepare for the closing of the company. On July 20, the retailer released its Chapter 11 bankruptcy plan, disclosing that shareholders would not receive anything following its bankruptcy:

“In full and final satisfaction of each Allowed Interest in BBB, each Allowed Interest in BBB shall be canceled, released, and extinguished, and will be of no further force or effect, and no Holder of Interests in BBB shall be entitled to any recovery or distribution under the Plan on account of such Interests.”

In June, it was announced that Overstock (NASDAQ:OSTK) had acquired some of Bed Bath’s intellectual property (IP) assets — including its website and domain name — for $21.5 million. Overstock also has plans to change its stock ticker from OSTK to BBBY, according to The Street.

BBBYQ Stock: Mark Your Calendars for Sept. 12

The Bed Bath brand will live on, but under the management of Overstock. The official Bed Bath website is currently operational under the power of Overstock, experiencing an interface makeover and an updated loyalty program in the U.S. On the flip side, all Bed Bath locations have officially shut down. The company’s bankruptcy files estimate that about $636 million of inventory will flow to its Debtor-in-Possession (DIP) budget.

Shareholders were also disappointed with Bed Bath’s sale of Buy Buy Baby, which was thought to be the company’s strongest asset. Dream on Me Industries, a supplier to Bed Bath, acquired Buy Buy Baby’s IP for $15.5 million and later 11 of the brand’s leasing rights for $1.17 million. CNBC reports that these stores are “well-positioned to reopen” and located in popular real estate locations. Buy Buy Baby’s stores could reopen by as soon as this fall, backed by ambitious goals from Dream on Me’s management. The company’s Chief Marketing Officer, Avish Dahiya, previously disclosed plans to set up between 100 and 120 stores over the next one to three years.

For now, its apparent that BBBYQ stock only trades on speculation as the closing of the company draws closer. On Sept. 12, the company will hold a plan confirmation hearing to discuss the bankruptcy and final approval of its disclosure statement.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Eddie Pan 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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Source link

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currencies to display

Get The Latest Investing News
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.