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More bankrupt stocks, anyone?
Shares of GNC, the now-bankrupt vitamin and supplements retailer, rose as much as 60% in premarket trading on Thursday following its Chapter 11 bankruptcy filing on Tuesday.
The embattled nutrition chain, also known as General Nutrition Centers, said it plans to close as many as 1,200 of its 5,800 U.S. stores. In its first earnings quarter this year, the company also reported a loss of $200 million. The company plans to emerge from bankruptcy this fall.
GNC’s stock, meanwhile, has plunged from around $60 in 2013 to $0.61 at close on Wednesday. Volumes skyrocketed 814.7%, according to S&P Global data.
But as many market observers may have noted by now, it isn’t unusual to see shares of a newly bankrupt company skyrocket in trading. In fact, it’s become quite en vogue for day traders.
Shares of recently bankrupt car renter Hertz skyrocketed as much as 95% from the time it filed on May 22 through June 8. Shares of embattled retail titan J.C.Penney rose some 162% from May 15 through June 8, and shares of Whiting Petroleum also popped up some 840% from April 1 through June 8. Even before GNC had officially announced its bankruptcy filing, the company’s stock also popped more than 100% on June 8. The phenomenon has largely been attributed to active traders on millennial trading app Robinhood.
GNC, meanwhile, is facing a delisting from the New York Stock Exchange. On Wednesday, the NYSE announced that the staff of NYSE Regulation has determined to start the process of delisting the common stock of GNC.
Despite the bankruptcy troubles, it looks as if some traders on Twitter, at least, are ready.
In general, shareholders are the last to get paid in bankruptcy proceedings under U.S. bankruptcy law, which prioritizes parties like lenders and lawyers.
A spokesperson for GNC declined to comment to Fortune. Shares of GNC have fallen roughly 58% since a spike on June 8.
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