Billionaire investment firm Ryan Cohen has taken a large stake in Bed Bath & Beyond and recommends that the struggling retailer sell all or part of their business.
RC Ventures LLC has acquired a nearly 10% stake in Bed Bath & Beyond, according to a regulatory document. RC means Ryan Cohen, a co – founder of Chewy, who was the heart of the GameStop meme saga last year.
Cohen gained a large following on Reddit and social media in 2021 as smaller investors engulfed GameStop and other meme stocks. Bed Bath & Beyond was one such company and news of Cohen’s interest sent its shares, which have fallen 15% this year, more than 70% in the opening bell on Monday.
The stock price of Bed Bath & Beyond (listed on the Nasdaq with the BBBY symbol) was around $ 23 at 11:30 a.m. ET on Monday, or about 40% of the rent that the price of closed Friday at about $ 16.20.
In a letter to Bed Bath & Beyond Inc., Cohen said the decline in sales could no longer be blamed on the COVID-19 pandemic, and noted that other domestic chains are seeing sales near or above previous levels. to the pandemic. Bed Bath & Beyond Tea lost money for three consecutive years.
Cohen suggests in the letter the possible sale of part or all of the Union, New Jersey company. Part of the business that could be sold or split, according to Cohen, is the Buy Buy Baby chain. Any money from a full or partial sale could be used to pay off debt, put cash on the balance sheet and reduce debt, creating more value for shareholders, Cohen said.
“The last 10 years have shown that Bed Bath is facing a difficult existence in the public market. The market is not giving enough credit to the company for [Buy Buy Baby’s] “A sale that could block a substantial premium for shareholders and give Bed Bath the flexibility of the private market could be an ideal outcome for customers, employees and investors.”
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