Shares of “American IKEA” fell by 52% after news of bankruptcy
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Quotations of the home store chain Bed, Bath & Beyond collapsed by 52.3% to $0.14. By 11:55, the decline slowed to 37.45%, the price of one share of IKEA’s American counterpart amounted to $0.18, according to trading data on the NASDAQ stock exchange.
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Falling shares
Shares tumbled after the retailer announced it would file for bankruptcy on Sunday, April 23. It is planned that 360 Bed Bath & Beyond stores and 120 Buybuy Baby stores will sell off the remaining products, after which the outlets will close. The stores themselves will also be put up for auction.
Read: American IKEA filed for bankruptcy
Let’s remind
Investment company Sixth Street has agreed to provide Bed, Bath & Beyond with about $240 million in collateral to enable it to operate as part of the bankruptcy process.
“Bed, Bath & Beyond has finally come to terms with the fact that its business is in ruins and has filed for bankruptcy,” CNBC quoted Neil Saunder, a retail analyst and managing director of GlobalData, as saying.
In January 2023, the company warned that there was a risk of bankruptcy due to a sharp drop in sales. After that, the shares fell by almost 25%. In February-March, Bed Bath & Beyond additionally placed shares, however, the amount of funds raised was much lower than desired. So, in February, the retailer planned to receive more than $1 billion, but in the end it managed to collect $360 million.
In total, since Bed, Bath & Beyond announced the possibility of its bankruptcy, shares have collapsed on the NASDAQ exchange by 87.8%, to $0.2935.
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Editor of the news feed Yaroslav Holoborodko Writes on the topics: Macroeconomics, stock market, cryptocurrency
- Shares (securities)
Source: Ministry of Finance
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