Bed, Bath, and Beyond, one of the retailers that became a meme stock, has finally filed for Chapter 11 bankruptcy protection in NJ as the impact of creditors refusing to extend any more operating capital has finally put the company out of its misery.
This tidbit from the story on its bankruptcy via CNBC speaks volumes as to just how bad things have deteriorated:
At a popular Bed Bath outpost in New York City, a since laid-off staffer recently told CNBC that workers were standing around not knowing what to do after the company suddenly cut off in-store pickup and deliveries at the location. The worker was told liquidators would be coming the following day and soon learned employees wouldn’t receive severance after more than two decades with the company.
This wasn’t rocket science to say one could see this coming. My wife, who is the ultimate retail shopping critic, noted that during the past Christmas season the shelves were only half full, there were fewer employees to help, and that the air conditioning was turned up or off to save money. In other words, it was a dead man walking.
Of course the meme stock clowns kept it alive as long as they could and the spikes in price on internet rumors gave the smart money, including insiders, a chance to liquidate their positions. Stock charts do not lie:
Now all that’s left of this carcass of an equity is a penny stock for day traders on Reddit to play with until the reality hits:
Bed, Bath, and Beyond is a zero.
Take my word on this one, the Chapter 11 will turn into a Chapter 7 because there is no unique niche that this store fills in the retail space. The competition was better, cheaper, and much smarter. Look for a liquidation sale soon, near you.