Bed Bath & Beyond's stock has crashed to earth after a rollercoaster ride that defied gravity. Here's a timeline of its chaotic journey, fueled by meme-stock craze and mounting debt.
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- Bed Bath & Beyond's stock has been on a rocky ride in the past two years – and now the retailer is on the verge of bankruptcy.
- The company's shares have plunged about 91% since early 2021 when it surged amid the meme-stock frenzy.
- Here's a timeline of the key events that fueled Bed Bath & Beyond's tumultuous journey.
Bed Bath & Beyond, the once-beloved home goods retailer, has seen its fortunes sink dramatically of late - as captured by a precipitous fall in the company's share price.
The stock has plummeted almost 97% from peaks hit two years ago, when it had shot to fame as part of the meme-stock craze ignited by video game retailer GameStop. The shares traded at a mere $1.55 apiece at last check on Friday, compared with 2021 highs above $50.
The dramatic decline is only the latest leg in an extraordinary ride full of surprising twists and turns that spanned the past two years. The stock, which had slumped below $4 in 2020, skyrocketed during the meme-stock mania of early 2021 in a surge that was backed by little fundamental reason.
After that, Bed Bath & Beyond's stock has seen many unexpected ups and downs but since last summer, it has crashed seemingly with little support as the company struggled with a mountain of debt, high interest rates and pandemic-triggered inventory snags. Its market capitalization, which hit a record high of about $17 billion in 2013, has plunged to around $178 million currently.
Now, the clock is ticking for Bed Bath & Beyond on whether it can save itself from bankruptcy.
Here's a timeline of the key events that have shaped company's turbulent journey in the stock market over the past two years.
January 2021: The meme-stock frenzy kicks off
Bed Bath & Beyond's stock surged 99% in January 2021 in an explosive start to the year after it was pulled into the meme-stock frenzy on the back of GameStop's short squeeze.
Meme stocks became a red-hot topic in global markets when an army of retail traders who mobilized themselves on Reddit's Wall Street Bets forum drove epic rallies in shares of struggling and highly shorted companies. Among the names that gained traction were Bed Bath & Beyond, AMC, BlackBerry and Beyond Meat.
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June 2021: Bed Bath & Beyond launches three new brands
The retailer introduced three new private brands around mid-2021 in a bid to capitalize on consumers' obsession with home improvement during the pandemic period that kept people indoors.
The new store brands – Our Table, Wild Sage, and Squared Away – all focused on the home. The launch sent the Bed Bath & Beyond stock, then still riding a wider meme-stock rally, surging some 62% in a single day.
In the same month, shares extended their advance after the retailer lifted its full-year revenue outlook, per CNBC.
November 2021: Brand rejuvenation continues
In early November of that year, Bed Bath & Beyond made a wave of announcements including the launch of a digital marketplace, a collaboration with grocery giant Kroger and a $1 billion share buyback plan that was ahead of schedule.
The stock surged 15% on the back of the initiatives.
March 2022: GameStop chairman reveals a $150 million stake in Bed Bath & Beyond
Bed Bath & Beyond's stock enjoyed a strong start to 2022, surging 34% as GameStop's chairman Ryan Cohen revealed he had nearly a 10% stake in the company. That made Cohen one of the top shareholders in the home furnishings firm.
Meanwhile, the billionaire investor urged the retailer's bosses to refocus and explore a sale of the company, given its slumping stock in the months prior, sales declines, shrinking market value and supply-chain issues.
June 2022: The meme-stock craze dies down
Over spring and summer of 2022, the hysteria around meme-stocks dwindled thanks to the Federal Reserve's rapid interest-rate increases aimed at containing inflation.
By June last year, Bed Bath & Beyond's stock had extended its slump after the retailer reported a $358 million net loss for the first quarter against a weakening macroeconomic backdrop, while CEO Mark Tritton resigned.
At the time, one analyst labelled the company's first-quarter results a "dumpster fire" that could see the business eventually shut down.
Shares in the firm fell 24% at the end of June on the news, and had sunk 65% compared to the same time in 2021.
August 2022: Store closures and mass layoffs
At the start of August last year, Bed Bath & Beyond's stock showed renewed signs of life as the meme-stock movement made a comeback. Shares surged over 360% by mid-August, even after a "dumpster fire" quarter.
Then on August 17, things took a gloomy turn after Cohen said he intended to sell his entire position in the retailer. The GameStop chairman and Chewy founder revealed he had cashed out all of his stock and options for $189 million. Bed Bath & Beyond's stock instantly bombed, falling as much as 43% in two days of Cohen's disclosure.
By the end of the month, Bed Bath & Beyond said it was closing 150 stores and slashing 20% of its workforce in a bid to cut costs. Shares of the retailer fell 21% on the day of the news, and continued to slide till year-end.
January 2023: Bankruptcy warning
The new year rang in more troubles for Bed Bath & Beyond after the retailer warned it may file for bankruptcy. The New Jersey-based home goods company had said in an SEC filing that there is a "substantial doubt" about the business's "ability to continue going."
That was after the company said it expects sales to fall by more than $600 million back in November.
The bankruptcy warning sent the shares sliding by more than 22%.
February 2023: Mounting debt troubles
The past month saw continued weakness in the stock, apart from a 92% single-day spike on February 6 fueled by meme-stock traders piling into the struggling retailer. That jump didn't last, and the price of the shares quickly tanked after the company announced it secured investor funding to raise over $1 billion in capital to avoid bankruptcy.
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The stock lost 50% of its value in February as the company missed interest payments on roughly $1 billion worth of bonds as its debt problems piled up.