Published: March 17, 2023 at 5:55 PM ET
Struggling home improvement retailer Bed Bath & Beyond Inc. BBBY said Friday it plans to hold a special meeting where shareholders would vote on whether to allow the company to implement a reverse stock split if its board decides to do so. Shares fell 19 percent after an hour. Stockholder approval would amend Bed Bath & Beyond’s certificate of incorporation to effect “a reverse stock split on the Company’s common stock, par value $0.01 per share, in a ratio of 1-5 and 1-10, such ratio to be determined at the discretion of the board.” The time and place of the meeting will be announced later…
Struggling home goods retailer Bed Bath & Beyond Inc.
BBBY
on Friday announced it was planning an extraordinary meeting where shareholders would vote on whether to allow the company to implement a reverse stock split, if its board decides to do so. Shares fell 19 percent after an hour. Stockholder approval would amend Bed Bath & Beyond’s certificate of incorporation to effect “a reverse stock split on the Company’s common stock, par value $0.01 per share, in a ratio of 1-5 and 1-10, such ratio to be determined at the discretion of the board.” The time and place of the meeting will be announced later, the company says. “Our proposed reverse stock split will allow us to continue to restore liquidity to execute our turnaround plan and improve the company’s financial position,” Bed Bath & Beyond CEO Sue Gove said in a statement. The company said the split “will have no effect” on its value or the relative ownership of its shareholders and that it could “withdraw the proposal and cancel the special meeting at any time if it determines that the reverse stock split is no longer in the best interests of the Company and its shareholders.”