Interesting timing considering BBBY merger / acquisition announcement coming out later today or tomorrow.
(media.greatawakening.win)
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Amazing I had to scroll so far to find this.
BBBY is a shit company who already sold their name.
This theory is completely silly.
They were a shit company and they did sell their name.
That doesn't negate this play.
Do you understand what a carve out is?
Do you understand that the new company that is acquiring them doesn't want their name? "Teddy" is already registered and coming in hot.
Do you understand the benefits of buying all of a company's infrastructure for pennies on the dollar plus the benefits of not having to pay taxes for the next 5 to 7 years?
Obviously not.
There is nothing of value aside from the name and brand recognition or the company would have been profitable.
Do what you want with your money, but this is completely silly.
Oh so millions and millions of dollars worth of infrastructure (buildings, leases, transportation fleet and more is worth nothing?
Another company buying all of that for pennies on the dollar AND enjoying 5-7 years of no taxes isn't worth it?
You're dumb af. Go suck mud.
Yes, they are worth NOTHING.
How much property was OWNED and how much was LEASED?
I remember reading back before the BK that they leased all or most of their stores.
Commercial real estate leases, at higher rates than are available today, or worth NOTHING, or very close to it.
Car and truck leases are worth NOTHING.
These idiots were trying to stay in business. It is a sure thing they sold off everything they could, and left the business with a bunch of paper leases -- worth zilch.
You really should not show off how stupid you are by saying such things.
And in a public forum, no less!
LOL.
Shills are everywhere. Just another bottom feeder.
It’s worth nothing if you OWE more than it’s worth.
I think the dumb ones are the ones who lost money on this obvious scam. You gonna apologize when nothing happens?
Nothing of value? I'm not an expert on this, but even I can understand the basic concept that the NOLs are what the value is in this play; just like how Buffett was able to form Berkshire Hathaway.
Do you understand how a bankruptcy works?
Do you understand that bankruptcy proceedings can have more than one outcome?
A company bankruptcy turning into a carve-out or acquisition is a process where a financially distressed company undergoing bankruptcy proceedings sells a portion of its assets or business operations to another company, often referred to as the "acquirer" or "buyer." This transaction can be part of the bankruptcy restructuring plan and is designed to help the distressed company satisfy its debts and reorganize its operations. Here's how the process typically works:
Bankruptcy Filing: The distressed company starts the process by filing for bankruptcy, which can be either Chapter 11 bankruptcy in the United States (reorganization) or a similar proceeding in other jurisdictions. This legal action provides protection from creditors and gives the company time to develop a plan to address its financial troubles.
Asset Evaluation: During the bankruptcy proceedings, the company, often with the assistance of financial advisors or the bankruptcy court, assesses its assets and identifies which portions of its business are viable and valuable. These viable portions are potential candidates for sale.
Carve-Out Plan: The company creates a carve-out plan that outlines which specific assets, divisions, or business units it intends to sell to generate proceeds. This plan is presented to the bankruptcy court for approval.
Auction or Negotiation: The company may choose to sell these assets through an auction process, where multiple potential buyers bid on the assets, or it may negotiate directly with a single buyer. The objective is to secure the best possible deal for the assets.
Court Approval: The sale agreement is subject to approval by the bankruptcy court. The court ensures that the sale is in the best interest of creditors and that the price is fair and reasonable. If approved, the court allows the transaction to proceed.
Closing the Deal: Once the sale is approved, the distressed company transfers the specified assets to the acquirer. The proceeds from the sale are typically used to pay off a portion of the company's debts and other obligations as outlined in the bankruptcy plan.
Debtor Reorganization: The distressed company continues its bankruptcy proceedings to reorganize and stabilize its remaining business operations. This may involve reducing debt, renegotiating contracts, or making operational improvements to ensure long-term financial viability.
Post-Acquisition Integration: The acquiring company, after acquiring the carved-out assets, integrates them into its own operations. This may involve combining workforces, systems, or processes to maximize the value of the acquisition.
The key objective of this process is to enable the distressed company to emerge from bankruptcy as a more financially stable and viable entity, while the acquirer gains valuable assets or business units that align with its strategic goals.
A successful carve-out or acquisition in a bankruptcy scenario can provide a win-win situation: the distressed company can address its financial problems, and the acquirer can obtain valuable assets or expand its market presence. However, these transactions are complex and involve numerous legal and financial considerations, often requiring the expertise of bankruptcy professionals and legal counsel.
A carve-out can only happen in very limited bankruptcy cases.
Won't happen here.
Now that some of you pricks are pushing this story again on GAW, I became mildly interested in the story again.
It does not take much to learn that Overstock.com bought the brand name of "Bed, Bath and Beyond" for $21.5 million, and will start using that name on their website.
They will NOT be re-opening any brick-and-mortar stores.
My understanding from before was that most of those stores were leased, which means they have very close to $0 value, especially in a post-"Covid" economy where store space is much more vacant than ever before.
What other assets do they have besides brand name and real estate (in a commercial real estate market that is crashing due to much higher interest rates)?
Again, that is IF they had any real estate owned at all. My understanding was that their stores were leased, at what would likely be at much higher rates than current rates, which makes them worthless.
They were a retail company. The ONLY assets they have are garbage you can buy at Walmart or similar. Most likely, they will get a few cents on the dollar -- probably bought by Overstock.com.
They had $4 BILLION in assets -- ON PAPER. In reality, during a liquidation, it is worth very little. So, they got $21.5 million for the name. They will get squat for the leases and a few million for the inventory.
That will leave them WAY SHORT of the $5 BILLION they owe in debt.
Sure, debtors COULD (hypothetically) work out a deal on debt restructuring. This does happen frequently. General Motors did that, and many companies have done that.
BUT ...
GM and other similar companies filed BK when THEY HAD A REAL BUSINESS THAT COULD EVENTUALLY PAY OFF THE DEBT.
BBBY is ... OUT OF BUSINESS. Full stop.
OUT. OF. BUSINESS.
That means they will NEVER make any sales that could pay off ANY amount of debt.
Nobody is going to "buy" or "merge" their company with an empty shell ... IF they have debt to pay off.
Would somebody (like GME) possibly buy the empty shell because of tax deductions? Theoretically, it COULD happen ... BUT ... the debtors are NOT going to allow that to happen if GME/other company gets the benefit and the debtors get NOTHING.
Besides that, GME LOSES MONEY anyway.
They don't pay any taxes NOW because they LOSE MONEY.
Why would they pay good money to buy an empty shell so they could lower their taxes from $0 down to $0?
There are a TON of other companies out there that do make money and would outbid GME for it. GME does not have some secret handshake deal so they can just do what they want.
They would have to BID for it, and have no business reason to do so right now. Other companies would, though.
Do you ever look at these companies' financial statements? It's all public info.
And besides ALL OF THAT ...
So what?
Even if GME did buy the empty shell of BBBY, and did it for the tax money ... YOU WILL NOT MAKE ANY MONEY.
The BBBY shares have been EXTINGUISHED.
There is ZERO CHANCE that any bagholder will come out of this with anything other than a story to tell.
And those lying touts on Reddit (some of whom might be doing their dirty shit here on GAW) have told a fairy tale that too many people have fallen for.
The only thing sadder is how absolutely proud some of you seem to be about your ignorance.
Ironic statement. Do you understand the difference between Ch 7 and Ch 11 bankruptcy?
Yeah.
So what?
I called the big crash in GME stock and the bankruptcy of BBBY a good 6 months-1 year before it happened, and tried to warn GAW pedes not to get caught up in the tall tales the liars on Reddit were spinning.
But I was attacked repeatedly.
I was right, though.
I even showed why Ryan Cohen violated SEC regs with what he did in his BBBY stock and options transactions, and you know what happened?
Mod Bubbles Burst BANNED me for nothing more than disagreeing with him/her. No violations of GAW rules. Just pointing out fraud where I saw it -- with the SEC filings themselves.
Some of the people around here were so nasty about it all, that it does not suprise me to see that some of them held on to the very end.
Now, they are hoping that the liars on Reddit will figure out a story they can believe in so they can get their money back.
But Santa Claus left town -- with all the loot.
P.S. I have not been following this story lately, and did not know they sold their name. But you are right: that makes this story even more ridiculous, since that is the only asset they had that MIGHT be worth SOMETHING.