Bed Bath & Beyond (OTCMKTS:BBBYQ), which declared bankruptcy last month, was delisted from the Nasdaq yesterday as part of its bankruptcy proceedings. Now listed on an over-the-counter exchange under the symbol BBBYQ, the company’s shares are trending and gaining attention from retail investors.
More About BBBYQ Stock
Bed Bath & Beyond started trading as BBBYQ stock yesterday, soaring 30% to 9.79 cents throughout the trading day. Its trading volume of over 82 million shares was elevated for the OTC stock of a bankrupt firm. The company’s stock has tumbled 97% in 2023 and 99% in the preceding 36 months.
Additional Information About Bed, Bath & Beyond
The retailer had planned to shut down 360 of its Bed Bath & Beyond stores and 120 of its Buy Buy Baby stores yesterday. Now the firm has stated that it intends to close all its retail locations by the end of the year’s first half.
BBBYQ obtained $240 million of financing from Sixth Street Specialty Lending to keep the lights on for the next several weeks.
Launched in 1971 as a retailer that sold only products focused on bedrooms and bathrooms, Bed, Bath & Beyond carried out the initial public offering (IPO) of BBBY stock in 1992. In the last 15 years or so, the retailer had difficulty in coping with the rise of Google’s search engine and Amazon’s (NASDAQ:AMZN) e-commerce website.
Potential Beneficiaries of the Big Box Homeware Company’s Demise
According to investment bank Oppenheimer, Williams-Sonoma
(NYSE:WSM), Lovesac (NASDAQ:LOVE), and Wayfair (NYSE:W) are among the potential beneficiaries of the imminent closing of Bed, Bath & Beyond stores.
For its part, Bank of America identified Wayfair and Overstock (NASDAQ:OSTK) as winners from the development. While another investment bank, Piper Sandler, believes that Walmart (NYSE:WMT) and Target (NYSE:TGT) will get the most significant boost.
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.
