Last year, Bed Bath and Beyond stocks were at an all-time low after the business closed all of its physical stores and started liquidating assets. The company is still around but what does the future hold for the once-beloved chain…
And will the brand ever truly recover?
What Made Bed Bath And Beyond Stocks Sink?
After major success in 2021 and 2022, the company soon suffered due to risky moves and mismanagement. Slowly but surely, Bed Bath and Beyond started closing its doors.
While some customers hoped the brand would turn around, the company filed for Chapter 11 bankruptcy on April 23, 2023.
In a statement, Bed Bath and Beyond warned that trading in the stocks would pose substantial risks.
“THE COMPANY EXPECTS THAT HOLDERS OF SHARES OF THE COMPANY’S COMMON STOCK COULD EXPERIENCE A SIGNIFICANT OR COMPLETE LOSS ON THEIR INVESTMENT, DEPENDING ON THE OUTCOME OF THE CHAPTER 11 CASES.”
During this period, Bed Bath and Beyond briefly made it as a meme stock, sharing the title with Gamestop and AMC theaters. Yet, there was no promise that the investment would lead to any returns.
Seizing the opportunity, Overstock, an online home goods retailer, acquired the chain’s intellectual property…
In an effort to adopt the brand and bring it back to life.
After recent successes, Overstock purchased the brand to further capitalize on its loyal customer base.
The CEO of Overstock, Jonathan Johnson, expressed optimism and opportunism with this new deal.
“THE BED BATH AND BEYOND BRAND IS STILL STRONG. MISMANAGEMENT MAY HAVE HURT THE BUSINESS PROSPECTS, BUT THE BRAND IS STILL STRONG.”
The plan was to combine both retailers into an online one-stop shop for any home needs.
Overstock went as far as changing the company’s stock ticker from OSTK to BBBY to associate investors with the name of the brand.
Following the deal in June, Bed Bath and Beyond’s original stocks were extinguished…
LEAVING SHAREHOLDERS EMPTY-HANDED, DESPITE THE POPULARITY OF THE STOCK AS A MEME.
To make matters worse, Overstock hit and subsequently bounced back from a three-year low in November.
Now with the acquisition fully underway, we’ve yet to see exactly what’s in store for the retailer and its new partnership.
What’s Next For Bed Bath And Beyond?
Despite the troubles that riddled the brand in 2023, this next chapter might be looking up for Bed Bath and Beyond.
Since the three-year dip in Overstock’s shares, the retailer’s stocks have been steadily climbing back up.
It might be a while before Bed Bath and Beyond’s stocks and reputation are back to the high they reached in 2021. Overstock’s saving grace could be the thing to bring these stores back to life…
Or it could become yet another headache for shareholders.
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