What is bankruptcy risk?

Bankruptcy risk refers to the chance that a company will be unable to pay its debts, rendering it insolvent; it is often caused by inadequate cash flows or excess costs. Investors and analysts can measure solvency with liquidity ratios, such as the current ratio, which compares current assets to current liabilities.

What happens if BBBY goes bankrupt?

In the bankruptcy process, BBBY shareholders are last in line to get paid — after all those creditors — when the company’s assets are liquidated. Simply put, bankruptcy is unlikely to leave any cash for shareholders. With sadness, BBBY’s once loyal customers have moved on.

Did Bed Bath & Beyond file for bankruptcy?

Bed Bath & Beyond BBBY +1.9% filed for bankruptcy on April 23, according to the Wall Street Journal.

What happens if a company files for bankruptcy?

When a public company is unable to meet its debt obligations and files for protection under bankruptcy, it can reorganize its business in an attempt to become profitable, or it can close its operations, sell off its assets, and use the proceeds to pay off its debts (a process called liquidation ).