Bed, Bath & Beyond (NASDAQ:BBBY) declared bankruptcy this weekend, and BBBY stock appears poised to be delisted from the Nasdaq exchange. In early trading this morning, BBBY stock is plunging 34% to 19.3 cents.
The troubled retailer filed for Chapter 11 bankruptcy yesterday. At this point, the company intends “to close its 360 Bed Bath & Beyond and 120 buybuy BABY stores,” but it could alter those plans if an entity decides to purchase all or part of its business, Forbes reported.
However, the retailer obtained a $240 million loan that will allow it to continue operating for the time being.
Delisting Is Coming for BBBY Stock
In a Securities and Exchange Commission (SEC) filing, BBBY stated that it expects to receive a delisting notice from the Nasdaq exchange. The company stated that if it does receive such a notice it will not appeal the ruling. Consequently, BBBY will, in all likelihood, be delisted from the Nasdaq exchange in the coming weeks.
However, the company’s shares could continue to trade for some time under a different symbol on an over-the-counter exchange. The symbol will likely have a “Q” in it, signifying that the company has declared bankruptcy.
InvestorPlace Saw the Bankruptcy Coming
Last year, before BBBY warned investors about its ability to survive in January, I wrote that “Bed, Bath & Beyond seems headed for bankruptcy.” One of the reasons that I cited for my prediction was billionaire Ryan Cohen’s decision to get rid of his “‘bullish bets’ on BBBY stock” back in August. Another was the retailer’s decision to make Sue Gove as its permanent CEO in October. I noted that roughly two years after Gove left her prior CEO position, the company whom she served as CEO declared bankruptcy.
And in an article published on April 19, I warned that, “With Bed Bath & Beyond … likely heading to bankruptcy sooner rather than later, investors should unload BBBY stock.”
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
