Bed Bath & Beyond Inc.’s stock slid more than 3% before market open Monday amid mounting problems for the beleaguered retailer and sometime meme-stock darling.
S&P Global Ratings downgraded Bed Bath & Beyond’s
BBBY,
credit Friday, a day after the company said it was in default on loans that have been called in.
The default filing sent Bed Bath & Beyond’s stock plunging, although it rallied to end Friday’s session up 1.2%, outpacing the S&P 500 Index’s
SPX,
0.3% gain.
MarketWatch has reached out to Bed Bath & Beyond with a request for comment on the S&P downgrade.
“As we consider all paths and strategic alternatives, we continue to work with our advisers and implement actions to manage our business as efficiently as possible,” a Bed Bath & Beyond spokesperson said in an email Thursday. “As is our practice, we do not comment on speculation. We will update all stakeholders on our plans as they develop and finalize.”
Experts say bankruptcy is looming for Bed Bath & Beyond.
See also: Bed Bath & Beyond stock plunges more than 20% after filing shows default on loans
On Jan. 10, Bed Bath & Beyond announced the closure of almost 130 stores, just days after saying it may need to declare bankruptcy.
The announcement that the company may need to declare bankruptcy sent Bed Bath & Beyond’s stock sinking toward a 30-year low and followed a turbulent few years marked by strategic missteps, cash burn, challenging underlying business trends and the impact of the COVID-19 pandemic.
Bed Bath & Beyond’s stock has fallen 84.3% in the last 12 months, outpacing the S&P 500’s decline of 8.2%.
Related: What’s next for Bed Bath & Beyond after defaulting on its loans?
Of 11 analysts surveyed by FactSet, three have a hold rating, and eight have an underweight or sell rating for Bed Bath & Beyond.
Credit: marketwatch.com