The stock price of home goods retailer Bed Bath & Beyond has risen sharply as the company has made substantial headway in paying down its debt. After filing for bankruptcy in late April, the firm just disclosed in an 8-K filing that its debt had decreased to $1.7 billion, from $5.2 billion at the beginning of the year.
Bed Bath & Beyond’s shares jumped an astounding 39.1 percent on Monday after this favorable announcement sent shockwaves through the market. It was the most percentage increase in a single day since May 8 when the shares increased by 51.9%. The business, which was formerly popular among meme stock lovers, was delisted from the Nasdaq and started trading over the counter on May 3.
The stock price of Bed Bath & Beyond, which closed at almost 32 cents on Monday, is a long cry from its Nasdaq-era highs. Despite four 2-for-1 stock splits, the price of the company’s shares hit an all-time high of $80.48 on January 3, 2014.
Recently, Overstock.com Inc. won a bidding war for Bed Bath & Beyond’s property. According to paperwork submitted to the U.S. Bankruptcy Court for the District of New Jersey last Thursday, the initial investment for this transaction was $21.5 million. All of Bed Bath & Beyond’s digital assets and mobile platform are included in the Asset Purchase Agreement.
The COVID-19 epidemic significantly influenced Bed Bath & Beyond’s business, and the company’s bankruptcy was the climax of a period of turmoil characterized by strategic blunders, financial challenges, harsh market circumstances, and a lack of consumer confidence.