Shares of Bed Bath & Beyond (OTCMKTS:BBBYQ) stock are down by about 14% this week after the company released its monthly operating reports for the periods ended June 30 and July 31. At the beginning of June, the bankrupt company reported a cash balance of $12.51 million. After accounting for $144.16 million in receipts and $155.43 million in total disbursements, Bed Bath ended the month with a cash balance of just $1.23 million.
At the end of July, the company had a cash balance of -$22.58 million. This sum factored in total receipts of $229.57 million and total disbursements of $263.51 million. Bed Bath’s total disbursements for quarterly fee calculation have now added up to a cumulative $629.60 million.
BBBYQ Stock: Bed Bath & Beyond Still Owes $1.5 BILLION to Creditors
For July, Bed Bath reported that it still has $1.5 billion in total funded debt. Its funded debt consists of $473.68 million of secured debt and $1.02 billion of unsecured debt. Secured debt requires collateral, while unsecured debt does not. Bed Bath’s secured debt consists of capital lease obligations and loan facilities, while its unsecured debt consists of senior notes due in 2034 and 2044.
Bed Bath has also listed several companies in the Selected Post-Petition Accounts Payable (AP) section of the July report. The top three companies listed are Oracle (NYSE:ORCL), Workday (NASDAQ:WDAY), and NCR Corporation (NYSE:NCR). Combined, the top 50 companies listed in the AP section account for 84.7% of the total AP.
What all of this means is that Bed Bath owes a lot of money to a lot of entities. Shareholders of BBBYQ common stock are far down the line in terms of bankruptcy payments. That doesn’t bode well for BBBYQ stock.
“Common stock shareholders are last in line to recover their investments, behind bondholders and preferred shareholders,” explains Investopedia. “As a result, shareholders may receive pennies on the dollar, if anything at all.”
Meanwhile, The Wall Street Journal recently reported that the Securities and Exchange Commission (SEC) is investigating Ryan Cohen’s trades of BBBYQ. The GameStop (NYSE:GME) executive chairman initially disclosed a $120 million stake, only to sell it a few months later, causing BBBYQ to decline dramatically. Before the sale, Cohen posted a positive statement concerning the company on X (formerly Twitter). Cohen is estimated to have profited $60 million from the sale.
On the date of publication, Eddie Pan 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.
