Bed Bath Beyond stock price plummets 30-year low

Shares of Bed Bath Beyond hit a 30 year low on Monday after the specialty retailer said it would hold a special meeting to seek shareholder approval for a reverse stock split.

The time and location of the meeting will be announced later, the company said.

Shareholder approval will affect the company's certificate of incorporation to carry out a reverse stock split of common stock, at a ratio between 1 for 5 to 1 for 10 while the ratio of the split will be determined by the retailer's board of directors.

Edward Moya, a senior market analyst for OANDA in New York, said this doesn't look like it will end well for Bed Bath and Beyond. The retail staple is desperately trying to keep the deal with Hudson Bay Capital alive, but the current macro backdrop is making any deal for Bed Bath Beyond less attractive. The reverse stock split won't have an effect on business operations or outstanding indebtedness, and the board can revoke the proposal and special meeting at any time.

Sue Gove, President and CEO of Bed Bath Beyond, said: "Our proposal for a reverse stock split will allow us to rebuild liquidity to execute our turnaround plans and position the company financially." She said we look forward to engaging with shareholders and continuing to provide meaningful updates as we progress with our strategy.

Even if the amendment is approved for the certificate of incorporation, the board may delay or abandon the reverse stock split at any time prior to the effective time if it decides that the split is no longer in the best interests of the company or its shareholders, according to a company release.