Bed Bath & Beyond’s stock drops after retailer convenes shareholder meeting to approve reverse stock split

Struggling home goods retailer Bed Bath & Beyond Inc.

BBBY

said Friday it planned to hold a special meeting where shareholders would vote on whether or not to allow the company to conduct a reverse stock split, should the board decide to do so. Shares plummeted 19% after hours. Shareholder approval would amend Bed Bath & Beyond’s memorandum of association to “execute a reverse stock split of the company’s common stock, par value $0.01 per share, at a ratio of 1-for-5 to 1- for-10, with such ratio to be determined at the discretion of the Board.” The meeting time and location will be announced at a later date, the company said. Sue Gove, CEO of Bed Bath & Beyond, said in a statement. The company said the split would have “no effect” on shareholder value or proportionate ownership, and that it “may withdraw the proposal and may cancel the special meeting at any time if it determines that the reverse stock split is no longer in the works.” best interests of the company and its shareholders.”