BBBY - Why did Bed Bath & Beyond stock slide today? Bankruptcy is a possibility
Bed Bath & Beyond ( NASDAQ: BBBY ) dropped 29.88% on Thursday after warning in a SEC filing that it may need to sell assets or go through a bankruptcy. The highly-shorted stock fell to as low as $1.63 during the session and volume was over 42M shares swapped.
For its part, the retailer said it continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall. However, based on recurring losses and negative cash flow from operations for the nine months ended November 26, as well as current cash and liquidity projections, it has concluded that there is "substantial doubt" about the ability to continue as a "going concern."
Late in the day, The Wall Street Journal reported that Bed Bath & Beyond ( BBBY ) is prepping to file for bankruptcy within weeks. Sources said talks about a Chapter 11 filing could go into February.
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Why did Bed Bath & Beyond stock slide today? Bankruptcy is a possibility