He is recommending that the struggling retailer either sell all or part its business.
According to regulatory filings, RC Ventures LLC acquired a close 10% stake in Bed Bath & Beyond. Ryan Cohen, a cofounder of Chewy and a key figure in the GameStop meme saga, is RC.
Cohen gained a large following on Reddit, and social media in 2021 when smaller investors bought GameStop and other meme stock. Bed Bath & Beyond was one of those companies. News of Cohen’s interest sent its shares plummeting 15% to 70% at Monday’s opening bell.
At 11:30 a.m., the stock price of Bed Bath & Beyond (traded on the Nasdaq as the ticker symbol BBBY), was hovering around $23. ET Monday: This is a 40% increase in hires over Friday’s closing price at $16.20.
Cohen wrote to Bed Bath & Beyond Inc. and stated that the decline in sales cannot be attributed to the COVID-19 pandemic. He also noted that sales at other national chains are near or exceeding pre-pandemic levels. For three years, Bed Bath & Beyond has lost money.
Cohen suggests that Cohen sell a portion or all of Union, New Jersey’s company. Cohen suggests that the Buy Buy Baby chain could be sold off or spun-off. Cohen stated that any money from a partial or full sale could be used for debt repayment, cash management, and to lower the debt level, creating shareholder value.
“The public market has been difficult for Bed Bath over the past 10 years,” Cohen wrote. Cohen stated that the market doesn’t give Bed Bath enough credit for [Buy Buy Baby] value. A sale that could lock in a significant premium for shareholders while giving Bed Bath the flexibility to go private might be a great outcome for investors, customers and employees.
