Tailored Brands (TLRD before, TLRDQ after the bankruptcy), owner of Men's Wearhouse and Jos A. Bank, filed for Chapter 11 back in August. It's about to emerge from bankruptcy later this month (end of November). According to this news article, common shareholders are about to get wiped out. In particular, I quote:
Under the plan, Tailored Brands would shed $686 million in debt and turn ownership over to lenders and other creditors, after decades of being a publicly traded company.
Clear enough for me. Yet, yesterday the stock went from $0.08 a pop to $0.15 with 5 million trading volume. That's roughly $500.000 cash exchanging hands.
Now why on Earth would that happen? I'm puzzled. The stock is as good as worthless, its price should be $0.0, trading volume exactly zero. Or is there some hidden tax benefit in trading worthless penny stock? Or some other angle? Could someone provide some illumination?