Bed Bath & Beyond sinks 35% after the retailer says it lacks funds to pay debts and receives a default notice from JPMorgan
- Bed Bath & Beyond shares plunged Thursday after a fresh warning about its struggling financial condition.
- The struggling housewares retailer said it lacked funds to pay down debt, and JPMorgan said it was in loan default.
Bed Bath & Beyond shares plummeted Thursday after the struggling housewares retailer said loans have been called in by JPMorgan and that it lacked the cash to pay down debt, underscoring bankruptcy concerns.
The stock hit an intraday low of $2.10, down 35%, and triggered two trading halts during afternoon trade. The loss was later pared to 22% as shares closed at $2.52.
"At this time, the Company does not have sufficient resources to repay the amounts under the Credit Facilities and this will lead the Company to consider all strategic alternatives, including restructuring its debt under the US Bankruptcy Code," it said in a filing with the Securities and Exchange Commission.
Bed Bath & Beyond also said it received a notice of default from JPMorgan related to an amended credit facility, with the investment bank saying repayment was immediately due.
The update follows the company's warning earlier this month that its troubled financial conditions may force it to file for bankruptcy protection.
Earlier this month, a massive short squeeze sent the shares flying to a high of $5.87 each, up 134% from its close in 2022.
- Durjoy Datta tweets about Paytm UPI LITE making payments faster and easier, fellow author Ravinder Singh responds
- OnePlus Nord CE 3 leaks ahead of launch – specs, expected launch date and more
- JPMorgan Chase thought it had $1.3 million worth of nickel stored in a warehouse. A closer examination revealed bags of stones.
- Meet Rekha Rakesh Jhunjhunwala, the top Indian entrant in 2023 M3M Hurun Global Rich List
- Cyrus Poonawalla’s wealth grows as his health empire remains unlisted
- Adani Airports following investments as per plans submitted to govt: CEO
- Chinese leader Xi Jinping departs Russia but fails to achieve breakthrough in Ukraine conflict
- Healthcare, consumer goods minted the most Indian dollar billionaires