Bed Bath & Beyond trying to declutter the store
Bed Bath & Beyond aisles
Shares of Bed Bath & Beyond hit a 30-year low on Monday after the specialty retailer said it would hold a special meeting to seek shareholder approval for a reverse stock split.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | BED BATH & BEYOND INC. | 0.81 | -0.22 | -21.12% |
The time and location of the meeting will be announced later, the company said.
Shareholder approval will amend the company’s certificate of incorporation to carry out "a reverse stock split of common stock," at a ratio in the range of 1-for-5 to 1-for-10, while the ratio of the split will be determined by the retailer’s board of directors.
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Edward Moya, a senior market analyst for OANDA in New York, said "This doesn't look like it will end well for Bed Bath and Beyond."
"The retail staple is desperately trying to boost its share price above the key $1 threshold needed to keep the deal with Hudson Bay Capital alive, but the current macro backdrop of a looming recession is making any deal for Bed Bath & Beyond less attractive."
BED BATH & BEYOND MOVES TO SECURE $1B TO AVOID BANKRUPTCY
Bed Bath & Beyond store closing in Marlton, N.J., Mar. 19, 2023. While the board can revoke the proposal and special meeting at any time, the retailer said the reverse stock split would not have any effect on the intrinsic value of the business or a shareholder's proportional ownership, nor will there be any impact on business operations or any outstanding indebtedness. Sue Gove, president and CEO of Bed Bath & Beyond said, "Our proposal for a reverse stock split will enable us to continue rebuilding liquidity to execute our turnaround plans and better position the company financially." "We look forward to engaging with shareholders and continuing to provide meaningful updates as we progress with our strategy," she added. Even if the meeting occurs and the amendment to the certificate of incorporation is approved, the board may delay or abandon the reverse stock split at any time prior to the effective time if it determines the split is no longer in the best interests of the company or its shareholders, according to a company release. CLICK HERE TO READ MORE ON FOX BUSINESS Source: Read Full Article