Investors have also traded hundreds of millions of dollars’ worth of shares in collapsed lenders First Republic Bank, Silicon Valley Bank and Signature Bank, though none matches Bed Bath & Beyond in popularity. It is not the only recently bankrupt business to attract interest. The average daily trade value over the past month was US$4.8 million. bought its intellectual property for US$22 million and has announced plans to relaunch the brand, driving its own shares up more than 60 per cent.īut that has not stopped enthusiasts pushing the original Bed Bath & Beyond’s share price up almost 300 per cent since its delisting. “The bond market is telling you the stock is worthless,” Sosnick said.Īs of last week, the company no longer even owns the Bed Bath & Beyond name. These stocks will lurk around until the bankruptcy estate is settled, which can take months or years Whether shareholders receive anything at the end of bankruptcy proceedings depends on whether bondholders, who get paid before equity holders, can recover their money. “These stocks will lurk around until the bankruptcy estate is settled, which can take months or years,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. When a company declares bankruptcy, it is delisted from the major exchanges and its stock trades on the pink sheets for a fraction of its original value. The exchange is split into three markets, with the riskiest and most lightly regulated stocks trading on the Pink Open Market - so-called because of the coloured pink sheets on which quotes used to be published. More than 12,000 stocks trade on the U.S.’s main over-the-counter exchange, which is operated by OTC Markets Group Inc. Shareholders would be last in line to receive any payout from a sale of its business. In its initial bankruptcy filing in May, Bed Bath & Beyond reported debts of US$5.2 billion, compared with total assets of just US$4.4 billion. This advertisement has not loaded yet, but your article continues below.
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