Bed Bath & Beyond trying to declutter the store
Bed Bath & Beyond aisles
Shares of Bed Bath & Beyond hit a 30-year low on Monday after the specialty retailer said it would hold a special meeting to seek shareholder approval for a reverse stock split.
|BBBY||BED BATH & BEYOND INC.||0.81||-0.22||-21.12%|
The time and location of the meeting will be announced later, the company said.
Shareholder approval will amend the company’s certificate of incorporation to carry out "a reverse stock split of common stock," at a ratio in the range of 1-for-5 to 1-for-10, while the ratio of the split will be determined by the retailer’s board of directors.
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Edward Moya, a senior market analyst for OANDA in New York, said "This doesn't look like it will end well for Bed Bath and Beyond."
"The retail staple is desperately trying to boost its share price above the key $1 threshold needed to keep the deal with Hudson Bay Capital alive, but the current macro backdrop of a looming recession is making any deal for Bed Bath & Beyond less attractive."
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