One of the key stocks making headlines today is Bed Bath & Beyond (OTCMKTS:BBBYQ) stock. However, it’s not due to any news tied to its core brand. Rather, investors are contemplating news of possible store reopenings. Indeed, Buy Buy Baby and Harmon stores are likely to reopen following Bed Bath & Beyond’s bankruptcy. Interestingly, BBBYQ stock is down roughly 5% in today’s session, at the time of writing.
Dream on Me purchased Buy Buy Baby’s IP at a bankruptcy auction in June. The company will reportedly be looking to reopen certain stores in select markets. While plans haven’t been fully hashed out yet, it appears Dream on Me is looking to bring the Buy Buy Baby brand back to its heyday. The new owners purportedly are considering adding hundreds of new stores in the coming years. If and when that happens remains to be seen. However, plenty of consumers that will watch these developments closely.
Let’s dive into what to make of this news.
BBBYQ Stock Drops Yet Again
In many ways, the potential reopening of these Buy Buy Baby and Harmon locations is a net positive for consumers. That said, the fact that BBBYQ stock is down today on this news may be an indication that the market believes most of the value in Bed Bath & Beyond may have resided in its other non-core brands.
The new owners of the Buy Buy Baby banner said something interesting. Their view is that, “this business never failed. This business was shut down because Bed Bath was failing,” Raskas told CNBC. “We have the luxury of deciding which stores to reopen … we have that ability to focus on the right places at the right time where the customers really want us back again.”
Thus, perhaps Bed Bath & Beyond may not see the same kind of post-bankruptcy resurgence its smaller non-core holdings already have. Undoubtedly, BBBYQ is about as risky as any penny stock gets, as these levels. And with presumably most of the valuable assets already stripped out of its business via bankruptcy auction, there may not be much room for upside left.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
