Dave & Buster’s Bankruptcy Concerns ‘Unfounded,’ Truist Says

Dave & Buster’s shares plunged Thursday after media outlets including Bloomberg and the WSJ highlighted a potential bankruptcy concern mentioned in a company filing last week. Truist Securities’ Jake Bartlett called the concerns “unfounded,” and advised clients to buy the stock on weakness.

• PLAY sank as much as 20%, the most since April 1
• The share price drop is a “severe over-reaction” to the WSJ article, which referenced the company’s disclosure in its second quarter 10-Q from last week
  • Dislosure said lenders could force PLAY into Chapter 11 bankruptcy, if it is not in compliance with debt covenants after the ...