Bed Bath & Beyond (OTCMKTS:BBBYQ) stock has shed 96% of its value so far this year in light of its Chapter 11 bankruptcy filing. Tomorrow, Sept. 30, shares of the once vibrant retailer are set to be “canceled, released, and extinguished.”
Most BBBYQ stock holders have accepted this fate, although some are wondering if billionaire Ryan Cohen will make one final move to save the company. That’s a pipe dream with chances close to zero. Earlier this month, The Wall Street Journal reported that the GameStop (NYSE:GME) CEO was under investigation for his profitable trade in BBBY last year.
“Cohen took a $120 million stake in Bed Bath & Beyond and pushed for changes to the housewares retailer’s sales strategy, but abruptly sold his 11.8% interest in August 2022, just days after tweeting positively about the company,” said the WSJ. “The five-month investment netted him a profit of nearly $60 million.”
BBBYQ stock has tanked over 30% today as tomorrow’s deadline looms.
Is It Too Late for Ryan Cohen to Save BBBYQ Stock?
With today being the last day before Sept. 30 and factoring in the Securities and Exchange Commission (SEC) probe of Cohen’s BBBY trade, it’s safe to say that Cohen will likely not involve himself with BBBYQ. Plus, he was recently appointed as GameStop’s CEO, president, and chairman, taking on a flurry of responsibilities in the process. At this point, Cohen has no real reason or motivation to try and save Bed Bath or BBBYQ stock. In addition, the company’s intellectual property has already been purchased by Overstock (NASDAQ:OSTK).
BBBYQ shareholders should get ready to say farewell to the stock. As of Aug. 21, Bed Bath had assets worth $42.4 million and liabilities of $1.50 billion. That doesn’t exactly convey confidence or a comeback of any kind. On the day of Bed Bath’s Plan, which is expected to be put into effect on or about Sept. 30, shares of BBBYQ “will be of no further force or effect pursuant to the Plan.” The Plan references Bed Bath’s actions to enact an orderly wind-down and liquidation of the company’s operations, as well as the “vesting of the assets of the Company Parties’ bankruptcy estates with the Wind-Down Debtors.”
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
