Told ya! I hope you listened.
The end may be near for Bed Bath & Beyond (BBBY).
In a statement published before the market open on Thursday, the company said bankruptcy is on the table as it works to shore up its leaky balance sheet amid continued financial struggles
It was all there in the financials and public filings, as I said all along.
Down 94% from the high to under $2 now.
I said Ryan Cohen screwed the BBBY investors and that BBBY was a dogshit company that was on the brink of bankruptcy.
Some of you attacked me for saying it. One cowardly mod (bubble_burst) even banned me for saying it.
I was right. I hope someone here listened and saved the pain of losing most of your investment in this loser company.
Couple of assumptions there. The infrastructure is there, the logistics is mature, their operations were fine. The ivory tower people made very bad decisions and their whole organization is paying the price. If you go to a location now, I think you'll probably see low morale but still well kept stores.
A review of the balance sheet, cash flow and P&L would be in order, but I would bet that a quick reorganization and perhaps bankruptcy to clear contracts and obligations to start fresh would turn it around completely. My family would go there immediately, and a bunch of us pedes would buy them out quick. Then he can restock with all-American stuff and... to the moon!
I haven't been paying much attention to BB&B's politics, but as a layperson I'll add my 2 cents. Something happened to their stock. It's all generic, cheaply made, and their selection is dogshit. I don't remember it being so bad 5+ years ago. It definitely gives off Kmart vibes.
At least you have a reasonable response, unlike most others who have done nothing but mindless bashing over the past several months on this issue, with no substance offered.
So, let's take a look at your idea.
Looking at their balance sheet, they own no real estate. So, all of their stores are leased. Other than that, what infrastructure could they possibly have? Sure, they have employees and systems, but that all goes bye-bye in less than 30 days with a notice to employees.
Logistics, I can't comment. Don't know specifically what you mean. But those relationships can also be done in 30.
Operations are obviously NOT fine. Just look at the trouble they are in.
Maybe so, but it does not change the reality they face.
As well as low inventory of items that nobody wants. How are you gonna turn around a retail store that has nothing to sell?
Yes. You should take a look. I have.
That is WHY I have said what I have said.
In theory, yes. Not so sure it will be that easy.
Even if they did, then ... STOCKHOLDERS WILL GET WIPED OUT.
THAT is what bankruptcy does. THAT is an important point for anyone who owns the STOCK.
If they wiped out all debt and payables, they still have the problem that their Operating Loss is big and getting worse, and that is before interest debt has to be paid.
Even if you wiped out all debt, they are still operating at a big loss with very little inventory.
Why would the debt holders agree to a restructure? How would they get paid back?
The debt holders might try to force liquidation.
I have no idea if they will, but it is a realistic possibility.
Even if they survive bankruptcy court and get the debt cleared, what BUSINESS do they have to get to profitability? What PLAN do they have?
I really don't care.
I came here 2 years ago to warn people about the bullshit touts who were pumping GME. Then, BBBY and DWAC entered the discussion, too.
I have been right. They have been wrong.
And anyone who listened to me saved themselves.
The lesson I wanted to drive home is: Do NOT listened to bullshit artists who pump stocks.
DO YOUR OWN RESEARCH.