BBBY - Bed Bath & Beyond plans to wind down operations in Canada

Bed Bath & Beyond ( NASDAQ: BBBY ) is on watch after a court filing indicated the Canadian operations are going out of business.

The Canadian division does not have the "capacity or ability to independently effect a recapitalization or restructuring of the Canadian operations without access to cash and the support" from the parent company and its lenders, per the filing . Earlier in the month, Bed Bath & Beyond Canada was granted an initial order for creditor protection by the Ontario Superior Court of Justice as part of the Companies' Creditors Arrangement Act.

Overall, the retailer operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores in Canada. Reuters reports the Bed Bath & Beyond banner in Canada had total assets of about $427.4M and total liabilities of about $342.8M, while Buybuy BABY Canada had assets worth $52.7M and liabilities of about $86.9M.

Shares of BBBY rose 2.13% in premarket action on Monday to $2.40 vs. the 52-week trading range of $1.27 to $30.06. Last week, BBBY saw a one-day gain of over 90% before giving back more than half of it over the next two days.

Bed Bath & Beyond ( BBBY ) is on Seeking Alpha's Catalyst Watch this week with more fireworks anticipated.

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