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August 28, 2023 : Bed Bath & Beyond shareholders are facing the prospect of holding worthless stock as the company approaches a bankruptcy hearing on September 12. The home goods retailer filed for Chapter 11 bankruptcy in April, citing a number of factors, including rising inflation, supply chain disruptions, and increased competition from online retailers.
As part of the bankruptcy process, Bed Bath & Beyond is expected to cancel its common stock. This means that shareholders will not receive any compensation for their shares, which have already lost more than 90% of their value in the past year.
The cancellation of Bed Bath & Beyond’s common stock is a significant blow to shareholders, many of whom invested in the company in the hope of making a profit. However, the bankruptcy filing was seen as a necessary step to prevent the company from going out of business altogether.
The bankruptcy hearing on September 12 will determine whether Bed Bath & Beyond’s reorganization plan is approved by the court. If the plan is approved, the company will emerge from bankruptcy as a smaller, more focused retailer.
