The share price of Bed Bath & Beyond (BBBY:NSD) increased by 35.3% on Wednesday, continuing a surprising rally of over 65% in the preceding five trading days. However, despite this recent growth, the company still faces the possibility of insolvency as its attempts to raise capital have failed.
The Wall Street Journal reports that Bed Bath & Beyond is preparing to file for Chapter 11 bankruptcy protection as early as this weekend. The company has struggled with declining sales and increasing losses over the past year, causing its share price to decline by more than 97%.
In order to avoid defaulting on its credit agreement, BBBY had previously initiated a turnaround plan and raised $360 million through an equity offering. However, the company still needs to raise additional funds to remain afloat, and its chances of doing so appear slim.
BBBY Stock Prediction:
According to the WSJ report, the company will likely file for bankruptcy if it fails to raise the additional $300 million in stock sales by April 26. Given the business downturn and share price decline, it seems unlikely that BBBY will be able to recover. According to BBBY stock prediction, it is anticipated that the stock of the company will continue to be highly volatile in the upcoming trading sessions.
