Bed Bath & Beyond's Reverse Stock Split Proposal Causes Stock to Tumble.

Bed Bath & Beyond is seeking shareholder approval for a reverse stock split at a ratio in the range of 1-for-5 to 1-for-10, with the final ratio to be decided by the board. The struggling retailer's shares fell 13% in extended trading following the announcement. The move is intended to generate greater investor interest in the company and enable it to continue rebuilding liquidity to execute its turnaround plans. Bed Bath & Beyond has already raised $360 million out of its planned $1 billion through an offering of preferred stock and warrants.