Shares of Bed Bath & Beyond continue to trade at high volumes despite the company’s grim outlook. The struggling home retailer filed for Chapter 11 bankruptcy in April and has been closing its physical stores. The company’s intellectual property was acquired by Overstock, which relaunched the brand as an online-only retailer. This move renders Bed Bath & Beyond shares essentially worthless for common shareholders, as the company confirmed in its bankruptcy plan, which allowed interests in it to be canceled and extinguished.
The company’s stock has plummeted over 91% since the beginning of the year, closing at $0.21 per share recently. While activist investor Ryan Cohen’s optimism about the potential value of its Buy Buy Baby unit sparked hope, no qualified bids materialized, indicating bleak prospects for shareholders. Overstock, which acquired Bed Bath & Beyond’s intellectual property, has seen its shares decline as well, despite increased downloads of the Bed Bath & Beyond app following the rebrand.
The high trading volumes in Bed Bath & Beyond’s shares suggest speculative trading with little chance of a positive outcome. The company’s future remains uncertain, and experts warn that such meme stock trading can lead to significant losses for retail traders. Amidst these developments, the broader implications of such trading behavior and its effects on investors and companies come under scrutiny.