Bed Bath & Beyond shares sink over 40% after bankruptcy filing

Shares of Bed Bath & Beyond Inc (BBBY.O) plunged about 41% premarket on Monday after the home goods retailer’s long fight to save its business ended in bankruptcy.

The once high-flying company filed for Chapter 11 bankruptcy protection over the weekend and said it had launched a liquidation sale after failing to secure the funds needed to stay afloat. It also plans to use the Chapter 11 proceedings to conduct a limited sale and marketing process for some or all of its assets.

Frankfurt-listed shares of the company slumped 41% on Monday.

Bed Bath has struggled with slumping sales and mounting losses over the past several months after its strategy to sell more store-branded products over national brands backfired, while a rough economy and tight spending also walloped the business.

“Bed, Bath & Beyond fell between the racks, unable to compete with the cut-price offerings of rivals like TJ Maxx (TJX.N) and value ranges of Target (TGT.N), and with their products not seen as little luxuries worth paying more for,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

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