Shareholders of Bed Bath & Beyond (BBBYQ) left with valueless stock

Bed Bath & Beyond shares are still being traded at high volumes, despite the impending declaration of worthlessness for this popular meme stock.

Nasdaq data shows that over 15 million transactions occurred on August 16 in shares of this struggling home retailer. Bed Bath & Beyond filed for Chapter 11 bankruptcy in late April and has since closed physical stores after failed attempts to raise capital.

The company’s intellectual property was acquired by Overstock, which has relaunched Bed Bath & Beyond as an online-only retailer. Overstock plans to change its stock ticker to BBBY and capitalize on the brand’s reputation. The original company’s physical stores have closed, and its assets will be liquidated.

In its April SEC filing, Bed Bath & Beyond warned that trading in its stock during the ongoing Chapter 11 cases was speculative and risky.

“The Company expects that holders of shares of the Company’s common stock could experience a significant or complete loss on their investment, depending on the outcome of the Chapter 11 Cases,” Bed Bath & Beyond said.

In its bankruptcy plan published on July 20, Bed Bath & Beyond confirmed that the common stock would be canceled and shareholders would not receive any recovery or distribution under the plan.

With a market cap of $152.25 million, common shareholders are unlikely to see any return on their investment.

The company’s confirmation hearing will take place on September 12, but there have been no positive catalysts for recent share purchases.

Last year, GameStop Chairman Ryan Cohen suggested that the Buy Buy Baby unit could achieve a billion-dollar valuation, but no qualified bids were received and Dream On Me acquired the baby segment’s assets for $15.5 million.

This suggests that current investors trading in Bed Bath & Beyond stock may be speculating on its value without realizing the potential for losses.

Bed Bath & Beyond‘s stock has declined by over 91% since the beginning of the year. Retail traders who have invested in the company are likely to see their investments disappear.

“Our society has become less regulated in the hopes of perfection, but it has led to destructive behaviors like meme stock trading. We turn a blind eye because it benefits certain entities, but we are overlooking the repercussions. This contributes to the decline of urban areas while people seek refuge in less crowded places. They are running away from the destruction,” said Cole Smead, CEO and portfolio manager at Smead Capital Management.

Overstock ‘oversold’

Overstock shares have also declined, but there is optimism due to increased downloads of the Bed Bath & Beyond app. The rebranding seems to be working, and the shares are considered oversold.

Michael Pachter, managing director of equity research at Wedbush Securities, mentioned that Bed Bath & Beyond’s debt exceeds its assets even after Overstock’s payment of $21 million.

“BBBY shareholders are likely to be left with worthless stock. Retail traders may hope for further asset sales, but it’s uncertain if there is anything valuable left to sell,” Pachter added.