Bed Bath & Beyond (BBBY) shares spiked as much as 85% during Monday’s session, trading above $5.65 each as a recent rally in the nearly-bankrupt retailer continues to gain momentum.
Shares of the embattled retailer are heavily shorted, with short interest on BBBY standing at about 53% of the float, according to data compiled by S3 Partners.
Bed Bath & Beyond has been trying to conserve cash as it teeters on the edge of bankruptcy after accruing up more than $1 billion in debt and losses by the end of 2022.
The company recently warned in a recent regulatory filing it was hit with a default notice from JPMorgan and does not have adequate funds to repay its loans.
Bed Bath & Beyond stock hit a 52-week low of $1.27 on Jan. 6th, with shares more than quadrupling since.
Investors have taken a risk-on approach over the past month, with AI-related equites joining beaten up tech names as the biggest winners in addition to meme names from yesteryear.
Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre