Why Bed Bath & Beyond Stock Is Soaring Today

Bed Bath & Beyond Inc BBBY shares are trading higher Wednesday following reports suggesting the company secured a loan deal.

According to a Wall Street Journal report, citing people familiar with the matter, Bed Bath & Beyond has found a financing source to help support its liquidity issues. 

The home furnishings retailer reportedly told prospective lenders Tuesday that it has selected a lender to provide the company a loan following a marketing process from JP Morgan Chase & Co JPM.

Last week, Bed Bath & Beyond shares plunged as GameStop Corp GME chair Ryan Cohen sold his stake in the struggling retailer. According to a regulatory filing from Bed Bath & Beyond, the company planned to execute on its "priorities to enhance liquidity, make strategic changes and improve operations" following Cohen's departure. 

"Specifically, we have been working expeditiously over the past several weeks with external financial advisors and lenders on strengthening our balance sheet, and the Company will provide more information in an update at the end of this month," Bed Bath & Beyond said.

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BBBY Price Action: Bed Bath & Beyond has a 52-week high of $30.06 and a 52-week low of $4.38.

The stock was up 25.6% at $11.01 at press time, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.