Bed Bath & Beyond announces reverse stock split plan, shares drop
Reuters
Published Mar 17, 2023 06:15PM ET
(Reuters) - Bed Bath & Beyond (NASDAQ:BBBY) said on Friday it was seeking shareholder approval for a reverse stock split, sending the struggling retailer's shares 13% lower in extended trading.
The company plans to hold a special meeting on March 27 to determine the split at a ratio in the range of 1-for-5 to 1-for-10, with the final ratio to be decided by the board.
The news comes less than two weeks after it was announced that the stock would be removed from the small-cap S&P 600 index, following a near 60% plunge this year as the retailer fights to stave off bankruptcy.
"The board believes that the reverse stock split will likely result in a higher per-share trading price, which is intended to generate greater investor interest in the company," Bed Bath & Beyond said in a regulatory filing.
CEO Sue Gove said the move would enable the company to continue rebuilding liquidity to execute its turnaround plans and better position it financially.
In February, the company said it was planning to raise some $1 billion through an offering of preferred stock and warrants. So far, it has raised $360 million out of the planned total.
Bed Bath & Beyond shot to popularity in the 1990s as a go-to shopping destination for couples making wedding registries and planning for new babies, but it has seen demand dwindle as its merchandising strategy to sell more store-branded products flopped.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.