In a significant turn of events, the shares of home goods retailer Bed Bath & Beyond Inc., once a favorite among meme-stock enthusiasts, have reached the end of their road. According to a recent filing on Friday, Bed Bath & Beyond (BBBYQ, -28.27%) announced the cancellation of its shares, rendering them utterly worthless as the company's bankruptcy plan comes into effect. Contemporaneously, Bed Bath & Beyond disclosed its initiation of an "orderly wind-down and liquidation process."
Bed Bath & Beyond's descent into bankruptcy earlier this year was precipitated by a tumultuous period marred by strategic missteps, substantial cash burn, adverse underlying business trends, and the enduring consequences of the COVID-19 pandemic. Despite these challenges, the retailer experienced a meteoric rise in its stock price last year, largely due to the influence of the Wall Street Bets community on Reddit.
The Final Endeavor
In a final, desperate attempt to avert bankruptcy, Bed Bath & Beyond disclosed its equity offerings during its last months of operation in 2023. Surprisingly, these efforts managed to raise over $400 million.
For Bed Bath & Beyond, once a behemoth in the realm of home goods, this bankruptcy marks the conclusion of an era fraught with difficulties.
Bed Bath & Beyond: A Rise and Fall Story
Despite once being a thriving household name, Bed Bath & Beyond has faced its fair share of challenges in recent times. The company filed for Chapter 11 bankruptcy protection in April, which led to its subsequent delisting from the Nasdaq exchange. Although liquidation sales are currently taking place at numerous stores, the stock continues to generate interest through over-the-counter trading.
Even activist investor Ryan Cohen, who completely sold off his stake in the company last year, is still mentioned in social media discussions surrounding Bed Bath & Beyond. Such is the resilience of this once-successful retailer.
Trading under the ticker BBBYQ, the stock closed at just under 7.9 cents on Friday, with a total of 8.82 million shares changing hands. However, this figure pales in comparison to the company's glory days on Nasdaq when it traded under the ticker BBBY. For years, Bed Bath & Beyond cemented its position as a leading retailer by offering renowned brands at discounted prices. Its devoted customer base propelled it to become a household name, with its stock reaching an all-time high of $80.82 on January 3, 2014. This record was achieved after adjusting for four 2-for-1 stock splits that took place along the way.
A New Direction
In June, a judge approved Overstock.com Inc.'s bid of $21.5 million to acquire Bed Bath & Beyond's assets. Since then, Overstock.com successfully completed the rebranding process of the company, finalizing it in early September.
This chapter in Bed Bath & Beyond's story serves as a reminder of the unpredictability of the market and how even the most established companies can face challenging times. Only time will tell what lies ahead for this once-mighty retail giant.
See more: Bed Bath & Beyond employees' final days bring chaos, confusion and rude customers: 'It's all a mess'
Shares of Overstock.com ended Friday's session down 0.6%.
Ciara Linnane contributed.