Posted on 01/16/2023 6:54:53 AM PST by fluorescence
Bed Bath & Beyond stock dropped Friday as investors digested reports that the company was in talks with lenders to finance the company during bankruptcy proceedings.
The conversations include the potential for a so-called horse bid, Bloomberg reported Thursday afternoon, citing people familiar with the matter. A horse bid would broker an agreement where the lender would also offer to buy some or all of the company’s assets in bankruptcy and set the low end of the bidding bar, Bloomberg added.
In an email to Barron’s, a Bed Bath & Beyond (ticker: BBBY ) spokesperson reiterated its statement that the company does not comment on “speculation of this nature,” and continues to evaluate “all paths” to regain market share and enhance liquidity.
Bed Bath’s financial performance has been struggling for a while. The company posted a wider loss than expected in the third quarter, with net sales declining 33% and same-store sales down 32%. Management has embarked on an ambitious cost-cutting plan, which includes shutting down roughly 150 stores by the end of fiscal 2022.
(Excerpt) Read more at barrons.com ...
Everything therer is overpriced
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