Business

Bed Bath & Beyond stock surges to get revenge on meme stock that lifted AMC


Bed Bath & Beyond Inc. led the meme stocks’ revenge on Monday, with the stock up 92%, but the stock turned tough in after-hours trading as executives announced plans to sell the stock. convert to get out of default.

Outdoor shower bed
BBBY,
+92.13%

will attempt to sell convertible preferred shares as well as warrants to purchase common shares and convertible preferred shares. The company expects to raise at least $225 million in the sale, but hopes to raise more than $1 billion, noting the possibility of “adding about $800 million in total proceeds through the sale.” through the issuance of securities requiring the holder of securities to exercise warrants to purchase shares of Series A Preferred Shares in future installments under certain conditions. [sic] be met.”

In a filing with the Securities and Exchange Commission on Monday, Bed Bath & Beyond revealed that JPMorgan Chase & Co.
JPM,
+0.59%

and other creditors agreed to work with the retailer if they could raise money. Bed Bath & Beyond revealed in late January that it was default on loans that have been called inresulted in faster payments and other requirements, but the banks agreed to waive or cancel those requirements and redo the retailer’s credit facilities in exchange for proceeds from the offering. for sale, according to Monday’s filing.

Retailer under siege is expected to file for Chapter 11 bankruptcy, but that didn’t stop its stock from surging at the start of the year. Bed Bath & Beyond shares are up 133% year-to-date, counting Monday’s gains. stock is stop twice in Monday afternoon trading and posted an intraday gain of up to 130% before ending up with a 92% gain, but the stock fell more than 30% in after-hours trading following the news on Friday. Monday afternoon.

Outdoor shower bed previously acknowledged a delisting notice due to a late quarterly filing, but on Monday said that’s no longer an issue because it filed quarterly documents. Bed Bath & Beyond also unveiled a new interim chief financial officer, Holly Etlin, who works for AlixPartners, which the retail company uses as an advisor. Etlin replaces Laura Crossen, who will continue in her role as chief accounting officer and senior vice president of finance.

Read: What’s next for Bed Bath & Beyond after default?

Other “classic” meme stocks also enjoyed gains in Monday afternoon activity. Shares of AMC Entertainment Holdings Inc.
AMC,
+11.84%

was briefly halted at 3:28 p.m. ET, before trading resumed at 3:33 p.m. Stocks closed up about 12%, although they had previously rallied more than 20% on Monday.

Shares of fellow meme stock GameStop Inc.
GME,
+7.24%

also rallied, gaining more than 7% on the day after rising to 11.8% earlier in the session.

Shares of GameStop are up 29% for the year, while shares of AMC are up 67%, another sign that the market is bullish.

Investors have been more keen this year to embrace struggling companies. Shares of Bed Bath & Beyond soared 133% through 2023, followed by an 183% rally in Carvana Co.
CVNA,
-7.06%
,
Used car retail stores see shares drop 91% in 2022 amid concerns about the company’s debt level and liquidity.

See more: Carvana stock enjoys best week ever as ‘meme-like’ activity continues

Shares of Nordstrom Inc.
JWN,
-8.34%
,
which now includes activist Ryan Cohen among its investors, retreated in Monday trading but is up 50% so far in 2023. Cohen, co-founder of Chewy Inc.
CHWY,
-1.15%
,
bought shares of GameStop in 2020 and began to incite change at the video game retailer.

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