Bed Bath & Beyond's stock hit record lows amid push for reverse stock split

By James Rogers

Bed Bath & Beyond Inc.'s stock closed at a record low of 31 cents Thursday as the troubled home-goods retailer continues its push for a reverse stock split

Bed Bath & Beyond Inc.'s stock closed at a record low of 31 cents Thursday as the troubled home-goods retailer continued its push for a reverse stock split.

The stock ended Thursday's session down 8.3%, compared with the S&P 500 index's gain of 0.4%. The embattled retailer's previous record closing low was 34 cents, which it hit on Wednesday, FactSet data show.

Bed Bath & Beyond's (BBBY) stock also hit an all-time intraday low of 30 cents during Thursday's trading session, surpassing the previous record of 32 cents, which it hit Wednesday.

Related: Bed Bath & Beyond's stock hits record low as troubled retailer pushes for reverse stock split

The sometime meme stock is pushing for a reverse stock split. In a filing Wednesday, Bed Bath & Beyond announced that a special meeting of shareholders will be held May 9 to vote on the reverse stock split proposal. The vote is on whether to effect a reverse stock split "at a ratio in the range of 1-for-10 to 1-for-20, with such ratio to be determined at the discretion of the Board," according to the filing.

Last month, Bed Bath & Beyond's stock fell below $1 after the company said it planned to hold a shareholder meeting to vote on a reverse stock split.

It has been a tumultuous few months for the retailer, which announced an equity offering earlier this year in an attempt to stave off bankruptcy. That came after a troubled couple of years marked by strategic missteps, cash burn, challenging underlying business trends and the impact of the COVID-19 pandemic. Last week the company gave a sales warning, sending Bed Bath & Beyond's stock to a then record low.

Related: Bed Bath & Beyond has launched a 'Hail Mary pass' with latest partnership, says retail expert

Early Wednesday, the retailer announced a new vendor consignment program with ReStore Capital in an attempt to boost its inventory.

"The consignment plan feels like a Hail Mary pass at this point, though necessary as Bed Bath & Beyond scrambles for inventory," Carol Spieckerman, president of retail advisory firm Spieckerman Retail, told MarketWatch Wednesday.

Spieckerman also told MarketWatch that Bed Bath & Beyond is continuing "a mighty fight" amid mounting distractions, such as former chief executive Mark Tritton's recent compensation lawsuit against the company. The lawsuit alleges that, in January, Bed Bath & Beyond ceased making payments owed under Tritton's separation agreement. Under the terms of the agreement, Bed Bath & Beyond was required to pay Tritton $6,765,000 in rateable installments over a 24-month period beginning in July 2022, according to the lawsuit. The payments were made from July 2022 to January 2023, it said.

Also read: Challenges facing ousted Bed Bath & Beyond CEO became 'quickly insurmountable': retail expert

Bed Bath & Beyond told MarketWatch that the company does not comment on legal matters.

Tritton, the former Target Corp. (TGT) chief merchant, was ousted as Bed Bath & Beyond's CEO last year after less than three years at the company's helm.

Bed Bath & Beyond's stock has fallen 87.7% in 2023, compared with the S&P 500's gain of 6.9%.

-James Rogers

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04-07-23 0832ET

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