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Bed Bath & Beyond (NASDAQ:BBBY) is at it again – the main “meme” stock of the past few weeks is gaining over 15% in early Wednesday trading, following a report by the Wall Street Journal claiming the company managed to secure a loan.
According to the rumors, a JPMorgan Chase-brokered deal will provide a lifeline of cash for the struggling home goods retailer, allowing it to meet immediate obligations, pay down some debt, and reassure suppliers and investors alike the company still has a path forward.
Details on size and terms weren’t disclosed, and the company is yet to release an official statement, although BBBY did previously indicate it looked to raise approximately $375 million. In its most recent quarter, the beleaguered retailer burned through $500 million of cash.
Bed Bath & Beyond stock has made lots of headlines lately following yet another “meme” run – shares went from under $5 to nearly $30, as activist investor Ryan Cohen (current Chairman of another “meme” name, GameStop (NYSE:GME)) built a ~12% stake in the company.
Cohen has since fully cashed out, sending shares sharply lower, and prompting accusations of a “pump-and-dump” scheme – Whitney Tilson of Empire Financial Research went as far as to file an SEC complaint, claiming “Cohen’s trading patterns stink to high heaven, and may be a classic pump and dump.”
BBBY closed at $8.78 yesterday but is soaring above $10 in early Wednesday trading.
