Michael M. Santiago/Getty Images News
Bed Bath and Beyond (NASDAQ:BBBY) tore off a 120% gains in Monday afternoon trading, even with the retailer recently indicating that it has failed to make payments to debt holders and could file for bankruptcy at some point.
Bloomberg it has also reported that former employees have not been paid the severance payments owed to them.
More than 183.5 million BBBY shares changed hands on Monday versus normal activity of around 37 million shares. That sky-high volume is with almost an hour of trading remaining. After a few weeks of drama, it’s still unclear whether the retailer will survive without filing for bankruptcy, restructure by selling off some assets, or completely liquidate its assets and go out of business.
BBBY shares rose to their highest level since January 12 with Monday’s burst. Frantic trading on BBBY coincides with short-term interest of over 45% of the total float. Another old meme/Reddit favorite – GameStop (GME) – pink 6.70% in late trading on Monday.
Seeking Alpha contributor Ryan Glover recently posted a detailed breakdown of what would happen in a Bed Bath & Beyond bankruptcy.
