Bed Bath & Beyond (NASDAQ:BBBY) stock is taking a beating on Monday after the retail company finally filed for bankruptcy protection.
According to a press release, Bed Bath & Beyond has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of New Jersey. This comes after weeks of experts expecting the company to take such an action.
The news release notes that Bed Bath & Beyond intends to wind down its operations during the bankruptcy period. The company also says that it intends to seek out a limited marketing process for the sale of some or all of its assets.
The company’s brick-and-mortar and websites for Bed Bath & Beyond and 120 buybuy BABY will continue to operate throughout the bankruptcy. To facilitate that, the company has received $240 million in debtor-in-possession financing from Sixth Street Specialty Lending, Inc.
What This Means for BBBY Stock
Today’s announcement almost guarantees the death of BBBY stock. Considering its bankruptcy filing, the Nasdaq is likely to send a delisting notice to the company. Taking into account its plans to wind down operations, it doesn’t seem likely that Bed Bath & Beyond will appeal that potential decision.
As far as trading activity goes, some 75 million shares of BBBY stock are on the move. That’s quickly approaching its daily average trading volume of about 108 million shares.
BBBY stock is down 24.8% during pre-market trading on Monday.
There’s more recent stock market news traders will want to read about below!
We’ve got all of the biggest stock market stories worth knowing about on Monday. A few examples include why shares of Appreciate Holdings (NASDAQ:SFR) and Tempo Automation (NASDAQ:TMPO) stock are up, as well as the biggest pre-market stock movers this morning. We’ve got all of that ready to go with the following links!
More Monday Stock Market News
- Why Is Appreciate Holdings (SFR) Stock Up 27% Today?
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (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.
