It’s an unfortunate time to be a fan of Bed Bath & Beyond (OTCMKTS:BBBYQ) stock. According to a recent update from the now-bankrupt company, shareholders will receive zero recovery under the current reorganization plan.
According to the proposal, filed in New Jersey Bankruptcy Court last Thursday, BBBYQ stock “shall be canceled, released and extinguished.” The filing will directly affect shareholders, some of whom expected some sort of financial compensation for their investment into the once-upon-a-time meme stock.
BBBYQ slipped more than 10% Friday, following the filing’s public release, with the stock now trading at just 32 cents per share. While Bed Bath stock has experienced something of a rally in recent weeks, the company’s recent bankruptcy campaign has clearly left some investors in the lurch.
Though, investors can’t be too mad, given the company warned investors that its shares would be worthless following its bankruptcy declaration. Some investors have nonetheless jumped on BBBYQ in hopes of a miraculous recovery–to little avail.
BBBYQ Stock Climbs on Overstock.com Sale
Despite the unfortunate news, BBBYQ stock is actually up today, less than 0.2%. There is some speculation that Bed Bath stock may become a target for short sellers hoping to cash in on a seemingly inevitable decline of a nigh-guaranteed bear.
At the time of writing, Bed Bath is essentially sorting out its remaining assets. Overstock.com (NASDAQ:OSTK) recently purchased the retailer’s brand, and data, for $21.5 million. Bed Bath was, at one point, even looking for a separate buyer of its retail locations, hoping to maintain its namesake and BuyBuy Baby stores.
Unfortunately, the retailer had little such luck. Currently, the company is actively liquidating its inventory, shutting down its stores, and has even found a buyer for the intellectual property rights for BuyBuy Baby infant retailer Dream On Me for $15.5 million.
On the date of publication, Shrey Dua 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.
