BBBY - Is Bed Bath & Beyond's Hail Mary Play Enough to Turn Things Around?
Bed Bath & Beyond (NASDAQ: BBBY) has issued a "going concern" notice. That's basically a warning that a company has to disclose when it is teetering on the brink of bankruptcy. Things have gotten desperate at this point and survival is the goal, not stockholder returns. So the company's recent convertible preferred stock issuance is something of a "Hail Mary" pass to buy more time, but it really doesn't solve the company's problems.
If Bed Bath & Beyond goes bankrupt, shareholders will likely be left with nothing. So the company doing everything it can to stay afloat is probably the right move for management to make. But investors need to understand just what has happened with the recent convertible preferred stock sale.
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Is Bed Bath & Beyond's Hail Mary Play Enough to Turn Things Around?