Bed Bath & Beyond (NASDAQ:BBBY) ripped a 120% gain in Monday afternoon trading even with the retailer indicating recently that it has missed payments to debtholders and could file for bankruptcy at some point.
Bloomberg has also reported that former employees have not been paid severance payments owed to them.
Over 183.5M shares of BBBY have swapped hands on Monday vs. normal activity of about 37M shares. That sky-high volume is with almost an hour of trading left to go. After a few weeks of drama, it is still unclear if the retailer will survive with no bankruptcy filing, restructure with some assets being sold, or completely liquidate its assets and cease to operate,
Shares of BBBY rose to their highest level since January 12 with the Monday pop. The frenzied trading on BBBY coincides with short interest standing at more than 45% of total float. Another former meme/Reddit favorite – GameStop (GME) – rose 6.70% in late trading on Monday.
Seeking Alpha contributor Ryan Glover recently posted a detailed breakdown on what would happen in a Bed Bath & Beyond bankruptcy.