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3 Red Flags That Bed Bath & Beyond Stock Is Too Risky to Own

TheMotleyFool

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3 Red Flags That Bed Bath & Beyond Stock Is Too Risky to Own: https://g.foolcdn.com/editorial/images/718278/22_08_02-a-person-with-a-shocked-and-surprised-look-at-a-computer-_mf-dload.jpg

Bed Bath & Beyond (NASDAQ: BBBY) just announced that it has received a default notice from a key lender. Management has stated that bankruptcy risk is very high over the coming year. But bankruptcy is normally a slow-moving process that drags on and on -- only at the very end will it speed up dramatically.

There were signs of Bed Bath & Beyond's increasing bankruptcy risk well before the most recent announcement. Here are three red flags investors should track for any company in distress.

The most glaring warning that a company is headed toward bankruptcy can often be found within the company's own Securities & Exchange (SEC) filings. The most recent 10-Q filing from Bed Bath & Beyond states specifically:

Source Fool.com

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