Bed Bath & Beyond stock plunged after the retailer called a shareholder meeting to approve a reverse stock split

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Home retailer Bed Bath & Beyond Inc. ,
said on Friday that it planned to hold a special meeting at which shareholders would vote on whether to allow the company to conduct a reverse stock split, should its board decide to do so. Shares were down 19% after hours. Shareholder approval will amend Bed Bath & Beyond's certificate of incorporation to “a reverse stock split of the Company's common stock, par value $0.01 per share, in the ratio of 1-for-5 to 1-for-10, as follows with the proportion to be determined at the discretion of the board. The time and location of the meeting will be announced at a later date, the company said. Sue Gove, chief executive of Bed Bath & Beyond, said in a statement: The offer will enable us to execute our turnaround plans and continue rebuilding liquidity to position the company financially better.” The company said the divestment will have “no impact” on its value or shareholders' proportionate ownership. “, and it “may rescind the resolution and cancel the special meeting at any time if it determines that the reverse stock split is no longer warranted by the company. best interests of the company and its shareholders.”