BBBY Stock ( NASDAQ:BBBY )
U.S. home goods retailer BBBY stock plunged on Thursday after the company said it was considering filing for bankruptcy to address its plummeting sales, diminishing cash, and heavy debt burden.
In a regulatory statement, the store disclosed that it had “serious uncertainty about its capacity to continue as a going concern” and was looking into “strategic options,” such as restructuring or refinancing debt or filing for bankruptcy.
Sales at Bed Bath & Beyond ( NASDAQ:BBBY ) dropped 33% from the previous quarter, leading the company to predict a loss of $385.5 million for the period. The revelation sent the company’s stock tumbling 23% in premarket trade on Thursday, sending the price to $1.84. With approximately 9.4 million shares moved as of 9:37 AM ET, the company was among the most active on the Nasdaq.
After prioritizing its private-label products, BBBY stock saw its profits and stock value plummet. The store’s leadership has recently changed direction and is actively working to stock more well-known brands.
“This past year’s implementation of a turnaround strategy has failed. In a nutshell, the company is heading in the wrong way at breakneck speed, and bankruptcy is the most probable outcome, “Author and GlobalData analyst Neil Saunders said.
The firm’s stock price shot up by more than 400% in a single year, making it a popular topic of internet jokes. GameStop Corp (NYSE:GME) chairman and activist investor Ryan Cohen bought stock in Bed Bath & Beyond ...
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