The specter of bankruptcy had loomed over Bed Bath & Beyond Inc. for months before the home-goods retailer filed for Chapter 11 on Sunday. Bed Bath & Beyond’s
stock fell 37.1% Monday on volume of 376.82 million shares, well above the stock’s 65-day average of 105.6 million.
Stocktwits, a social platform for investors and traders, told MarketWatch that roughly 81 million Bed Bath & Beyond shares are sold short Monday, sitting near the highest level in the stock’s history. Just as Bed Bath & Beyond is paring down its assets and settling its positions, so are market participants, said Tom Bruni, lead writer of the Daily Rip & Markets, Stocktwits’ newsletter. “Longer-term holders are figuring out what to do with their remaining shares (or profitable short positions), and traders continue to take advantage of the volatility in the market,” he told MarketWatch. Also read: Bed Bath & Beyond: from home-goods behemoth to bankruptcy “With that said, today’s average trading volume makes it a lot easier to cover those shorts than in the past,” Bruni added. “Average trading volumes have been in the tens of millions all year and into the hundreds of millions since March 30, 2023.” Bed Bath & Beyond and “certain of its subsidiaries” are now operating their business and managing their properties as “debtors in possession” under the jurisdiction of the bankruptcy court, according to a filing with the Securities and Exchange Commission Sunday. Debtor-in-possession, or DIP, financing lets companies keep operating in Chapter 11 bankruptcy. In a statement released Sunday, Bed Bath & Beyond said it intends to use the Chapter 11 proceedings “to conduct a limi …
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