Why Bed Bath & Beyond Stock Is Diving After Hours

Bed Bath & Beyond Inc BBBY shares are trading lower in Tuesday's after-hours session after the company received a delisting notice from the Nasdaq.

What Happened: The Nasdaq sent a notice to Bed Bath, informing the company that it has decided to delist its common stock due to its recent Chapter 11 bankruptcy filing.

Bed Bath's common stock will be suspended at the opening of business on May 3.

Additionally, the company announced that it would cancel the Special Meeting of Shareholders that was scheduled for May 9. The company is also withdrawing all proposals set forth in its definitive proxy statement on Schedule 14A filed with the SEC on April 5.

The news comes after Bed Bath on Sunday filed for Chapter 11 bankruptcy. The company previously said it would strategically manage inventory in case it finds a buyer for its businesses. If a sale is successful, the company will pivot to implement a transaction and preserve value. 

See Also: Bed Bath & Beyond Stock Certain To Go To Zero, Says Whitney Tilson: 'There Will Be No Miracle Like Hertz'

BBBY Price Action: Bed Bath & Beyond shares were down 22.2% after hours at 16 cents at the time of writing, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.