Bankrupt home goods retailer Bed Bath & Beyond (BBBY) - Get Free Report has released a new document, which a court has approved. The "Plan" outlines the actions to be taken regarding the company and its assets as part of its bankruptcy proceeding.
The Plan primarily involves a controlled winding down of the company's operations and the transfer of its assets to the "Wind-Down Debtors."
According to the most recent financial information, the company still has $42.4 million in total assets and a significant debt of approximately $1.5 million.
According to the plan, there were 782 million outstanding BBBYQ common shares on July 20.
The Plan clarifies that all these shares will be effectively canceled and no longer have any value once it takes effect. This is expected to occur "on or about" September 30.
Put simply, the company's shareholders will be left with absolutely nothing — not a dime.
Could Cohen Get Involved (Again)?
Surprisingly, even though the funeral date for Bed Bath & Beyond appears to be set, some shareholders are holding out hope for a last-minute savior who could turn the company's fortunes around.
There's speculation that Ryan Cohen, GameStop's (GME) - Get Free Report executive chair and an erstwhile investor in Bed Bath & Beyond, might make a new investment in the company. This optimism has pushed BBBYQ up by nearly 30% in the last five days.
However, the situation involving Cohen and Bed Bath & Beyond is far from ideal.
According to a report in the Wall Street Journal, the U.S. Securities and Exchange Commission (SEC) is looking into Cohen's ownership of Bed Bath & Beyond shares and his unexpected decision to sell them.
Back in March 2022, Cohen announced that he had acquired a nearly 10% stake in the retailer. He mentioned that he was urging the company to explore different options, including going private.
However, in August of the same year, a regulatory filing revealed that Cohen bailed on his Bed Bath & Beyond position when the stock made an impressive rally.
The SEC is reportedly seeking details from Cohen about his trades and his conversations with top executives at the now-defunct home goods retailer.
They've also requested records from some of the company's past and present board members, according to sources familiar with the matter. (Cohen appointed three members to the Bed Bath & Beyond board and replaced its then-CEO, Mark Tritton.)
Cohen's legal troubles aren't limited to the SEC investigation. He's also facing a class-action lawsuit led by Belgian investment firm Bratya SPRL. The suit alleges that Cohen engaged in a "pump and dump" scheme involving his Bed Bath & Beyond shares.
The suit also claims that Cohen collaborated with former Bed Bath & Beyond CFO Gustavo Arnal, who released "fraudulent and misleading SEC filings." Tragically, Arnal died by suicide a few months after the lawsuit was initially filed.
The suit is requesting $1.2 billion in damages for shareholders.
In a rare interview last year, Cohen briefly explained why he sold his Bed Bath & Beyond position: "In general, it's rare to see a company that goes from aggressively repurchasing shares to losing a lot of money. So when I saw that, and I saw the results, my views of the business changed, and ultimately, I sold."
Considering this challenging situation, it's likely that the last thing Ryan Cohen wants right now is further involvement with Bed Bath & Beyond.
Moving On and Getting Over It
There will be something of an afterlife for Bed Bath & Beyond. Overstock.com (OSTK) has purchased the intellectual property of the home goods retailer and is awaiting the demise of Bed Bath & Beyond's stock to take on the BBBY ticker.
Will the new BBBY stock be as popular as the old one? That's up to the retail investors.
[link] [comments] https://www.reddit.com/r/stocks/comments/16p8x0h/bed_bath_beyond_bbbyq_the_funeral_is_scheduled/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
