Even ahead of its stalking horse bid, Bed Bath & Beyond (OTCMKTS:BBBYQ) stock just can’t catch a break. Indeed, the once-upon-a-time retailer is down more than 2% currently, just a day away from the start of the public auction for its assets.
What’s going on with BBBYQ stock lately?
Well, tomorrow marks the stalking horse bid deadline for the retailer. This means that on June 1, debtors will set a minimum range of bids for some or all of Bed Bath’s assets. After the stalking horse bid is set, other bidders have until June 7 to make a follow-up bid, which must be greater in value than the stalking horse. If necessary, an auction may be held on June 14.
Once all that is said and done, the sale objection deadline is scheduled for June 19. That marks the date on which debtors may opt to file an objection to the winning bidder’s purchase-in-progress. Assuming no such conflict, the final sale hearing will occur on June 21.
“The hearing before the Court to consider approval of the successful bid or bids, pursuant to which the Debtors and the winning bidder or bidders will consummate the sale.”
What to Expect From BBBYQ Stock Post-Auction
While the dates have been set for the auction and final sale hearing, it’s unclear exactly who, if anyone, will put up an offer for the remains of Bed Bath. However, given the once-iconic store’s legacy, most experts expect at least some bids on its assets following the stalking horse.
Just as uncertain is what will happen to Bed Bath stock. Stocks are typically suspended during bankruptcy sales and, while that would be a fair expectation for BBBYQ stock, it’s still up in the air at the moment. Currently, BBBYQ is traded over-the-counter, since the company was delisted from the Nasdaq earlier in May.
Reasonably so, the company has been trading well below the Nasdaq’s $1 minimum bid requirement for some time now. If you recall, Bed Bath filed for Chapter 11 in April after a notable fall in its business performance. At the time of this writing, BBBYQ stock trades for just 25 cents per share.
The path forward for Bed Bath & Beyond is as uncertain as it is rapidly approaching.
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On the date of publication, Shrey Dua did not hold (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.
