Reeling from the death of its chief financial officer last week, Bed, Bath and Beyond (US:BBBY) named an interim executive to fill the role on Tuesday.
The company said Laura Crossen is now CFO on an interim basis after Gustavo Arnal died by his hand shortly after a company meeting announcing layoffs and store closings.
The company’s C-suite is in disarray. Former investor Ryan Cohen drove former Chief Executive Mark Tritton out before selling his whole stake. Independent director Sue Gove is serving as interim CEO while a search for a permanent hire continues.
Complicating matters further, shareholders sued Cohen and Arnal and are hoping to form a class action against them and other defendants, alleging insider trading.’
Bed Bath & Beyond ended May with just $107 million in cash reserves, down from over $1 billion a year ago. Its loss for the latest quarter ended in May climbed to $358 million from $51 mln.
Once considered a category killer, the big-box chain faltered with unsuccessful campaigns to grow its private label business. Last week, it said it would “close 150 stores, cut jobs and overhaul its merchandising strategy to turn around its money-losing business.”
However, BBBY stock attracted the attention of so-called meme traders, a catchall phrase that describes contrarian retail (public) investors coordinating their activities via social media platforms, often to spark short squeezes.
According to Fintel’s Gamma Squeeze Leaderboard BBBY stock currently ranks second of 250 companies, with a 98.73 Gamma score.
A Gamma Squeeze happens when a stock price climbs suddenly due to actions in the options market. As more money flows into call options from investors, that forces more buying activity which can lead to higher stock prices.
This article originally appeared on Fintel
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