Bed Bath & Beyond shares soar as Ryan Cohen takes huge stake

By AP News

Share:

In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

The investment firm of billionaire Ryan Cohen has taken a large stake in Bed Bath & Beyond and is recommending that the struggling retailer sell all or part of its business.

The investment firm of billionaire Ryan Cohen has taken a large stake in Bed Bath & Beyond and is recommending that the struggling retailer sell all or part of its business.

RC Ventures LLC has acquired a nearly 10% stake in Bed Bath & Beyond, according to a regulatory filing. RC stands for Ryan Cohen, a co-founder at Chewy, who was at heart of the GameStop meme saga last year.

Cohen built a huge following on Reddit and on social media in 2021 as smaller investors gobbled up GameStop and other meme stocks . Bed Bath & Beyond was among those companies and news of Cohen's interest sent its shares up more 34% Monday, closing at $21.71 after hitting a peak for the day of $30.06.

In a letter sent to Bed Bath & Beyond Inc., Cohen said that declining sales can no longer be blamed on the COVID-19 pandemic, noting that other national chains are seeing sales near or exceed pre-pandemic levels. Bed Bath & Beyond has lost money for three consecutive years.

Cohen suggests in the letter the possible sale of part or all of the Union, New Jersey, company. One part of the business that could be sold or spun off, according to Cohen, is the Buy Buy Baby chain. Any money obtained from a full or partial sale could be used to pay off debt, put cash on the balance sheet and lower debt, creating more shareholder value, Cohen said.

“The past 10 years have shown that Bed Bath faces a difficult existence in the public market. The market is not giving the company nearly enough credit for (Buy Buy Baby's) value," Cohen wrote. "A sale that can lock in a substantial premium for shareholders and provide Bed Bath the flexibility of the private market could be an ideal outcome for customers, employees and investors."

Share:

In this article:

Industries:
Communication Services
Companies:
Bed Bath & Beyond

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for VTM Updates

Form submitted successfully!

Top Picks for Q2 2022

View More

Crypto Corner

Learn your NFTs from your BTCs