Why Bed Bath & Beyond Is Falling Again Today
Shares of Bed Bath & Beyond (NASDAQ: BBBY) had tumbled 8.1% as of 10:38 a.m. ET Wednesday as investors prepared for the worst following reports bondholders were circling their wagons to protect themselves from a potential debt reorganization.
Bed Bath & Beyond is looking for ways to reduce the burden of its debt as sales have failed to materialize following the pandemic lockdowns. While the retailer had previously secured some $850 million in liquidity as of the end of last month from new loans it secured from banks and other lenders, it is considering how best to restructure its debt portfolio.
Bondholders are worried any changes to the debt structure would harm their own interests in the event of a bankruptcy filing.
Source Fool.com
