Winc (WBEV) Stock Plunges 28% on Bankruptcy Filing
Winc (NYSEMKT:WBEV) stock isn’t doing so hot on Thursday as investors react to the wine subscription service company filing for bankruptcy protection.
Winc is filing for bankruptcy as the company has continued to struggle since going public late last year. That includes an ever-dropping share price, which is down 96% over the past 12 months.
Investors will also note that the company hasn’t been performing well in earnings. Winc last reported earnings on Nov. 15, which saw it miss EPS estimates by 9 cents and revenue estimates by $2.9 million.
Details of the Winc Bankruptcy
Winc points out in its bankruptcy filing that it has already lined up a potential stalking horse bid. This would see the bidder acquire all of its assets. As part of the agreement, an open auction will take place allowing others to bid on Winc’s assets.
Winc is also working alongside Banc of California (NYSE:BANC) in its bankruptcy filing. It has a credit agreement signed with the company’s predecessor, Pacific Mercantile Bank, from Dec. 15, 2020.
Today’s bankruptcy news is rattling investors, with WBEV stock seeing heavy trading. As of this writing, more than 446,000 units have been traded as investors offload shares. To put that in perspective, the company’s daily average trading volume is closer to 168,000 shares.
WBEV stock is down 28.4% as of Thursday morning.
Investors seeking out more recent stock market news are in luck!
InvestorPlace has them covered with all of the hottest topics they need to know about on Thursday! Among that is what has shares of Mullen Automotive (NASDAQ:MULN), Pacifico Acquisition (NASDAQ:PAFO) and Mobileye Global (NASDAQ:MBLY) stock moving today. You can find all of this news at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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