BBBYQ Stock: Bed Bath & Beyond Trims Debt to $1.7 Billion

Source: acarter89 / Shutterstock.com

Bed Bath and Beyond (OTCMKTS:BBBYQ) stock is once again grabbing headlines, and this time, for something quite promising. Indeed, according to a recent 8-K filing, the bankrupt retailer has slimmed its debt down to $1.7 billion, seemingly lightyears away from its previous $5.5 billion debt reading.

What does this mean for BBBYQ stock?

Well, at the very least, investors are clearly encouraged by the news. BBBYQ gained nearly 40% today in over-the-counter trading. This puts the retailer’s share price right around 32 cents.

As it stands, Bed Bath & Beyond is in the midst of offloading its assets. So far, Overstock.com (NASDAQ:OSTK) has purchased a share of the company’s assets and intellectual property for $21.5 million. Unfortunately for fans of the retailer, the deal with Overstock doesn’t include the functioning of any currently open Bed Bath stores. This means the retailer is on track on fully close its doors.

BBBYQ Stock Climbs as Interest Rises on Bed Bath

Bed Bath’s most important remaining asset is largely considered to be its infant-tailored retail chain, buybuy BABY. With more than 100 brick-and-mortar locations, many investors view the IP as the company’s most prosperous business venture.

Buybuy BABY is still effectively on the open market. But with Bed Bath & Beyond’s debt still hanging over the company, many investors are still hesitant to put any sort of money toward the once-thriving retailer.

News of Overstock.com’s purchase, as well as Bed Bath’s dwindling debt, has certainly revived interest in the bankrupt company, however. Since Overstock’s winning bid on June 22, BBBYQ has climbed nearly 45%.

It’s unclear what Bed Bath and Beyond’s current trajectory holds, but the company has become a sleeper hit among short sellers. Indeed, according to Yahoo Finance, about 18.5% of Bed Bath & Beyond’s float is held short.

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.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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