Bed Bath & Beyond Stock Jumps As Retailer Ramps Up Store Closures: What's Going On?

Bed Bath & Beyond Inc BBBY shares are rallying Monday in the wake of continued store closures. Here's a look at what's going on.

What To Know: Bed Bath announced plans to close approximately 150 "lower-producing" stores in late August as part of a strategic business review.

According to a Wall Street Journal report, the struggling retailer on Friday said it would close an additional 87 stores, as well as its entire Harmon chain of drugstores. A spokesperson also said the company will close five additional Buybuy Baby stores. 

The retailer's stock continues to be volatile as the company considers strategic alternatives, including potential bankruptcy. Earlier this month, Bed Bath said multiple paths were being explored and next steps were expected to be determined soon.

Late last week, the company revealed it "does not have sufficient resources to repay the amounts under the Credit Facilities," per a regulatory filing. Shares were halted to the downside before bouncing back.

From Last Week: What's Happening With Bed Bath & Beyond Stock?

A person familiar with the matter told the WSJ the company has "limited options" and is struggling to raise financing to stay afloat even as it continues to cut costs with store closures. If it doesn’t find appropriate financing, the company might need to close all or most of its stores, the person added.

According to Benzinga Pro, S&P on Friday downgraded Bed Bath from a "CC" rating to a "D" rating on expected general default. 

Monday's trading action appears to be very speculative. The stock was trending on various social platforms in early trading. 58.77% of the float is currently sold short, per Benzinga Pro.

Bed Bath's average session volume over a 100-day period is approximately 35 million. Monday's volume has already exceeded 53 million at the time of writing.

See Also: Benzinga's 'Stock Whisper' Index: 5 Stocks Investors Are Secretly Monitoring, But Not Yet Talking About

BBBY Price Action: Bed Bath has a 52-week high of $30.06 and a 52-week low of $1.27.

The stock was up 16.8% at $2.98 at time of publication, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.