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, which have tumbled 15% this year, up more than 70% at the opening bell Monday.
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."
CEO and founder of Pinstripes Dale Schwartz shares his thoughts on taking the company public, why they're set for growth this year, and why he's not concerned about inflation weighing on the restaurant sector.
With hype continuing to build for A.I. projects, expert insight on what companies seem poised to benefit, plus how it will impact the lives of everyday consumers.
Ford says it’s reducing production of the F-150 Lightning electric pickup vehicle as it adjusts to weaker-than-expected electric vehicle sales growth. The automaker said about 1,400 workers will be impacted by the move.
Walmart Inc. is raising the starting base pay for store managers, while redesigning its bonus plan that will put more of an emphasis on profits for these leaders.
Despite concerns about shipping delays in the Red Sea, RSM Chief Economist Joe Brusuelas says there are still reasons to be optimistic about the state of the U.S. economy.
Dan Ives, Managing Director and Senior Equity Analyst at Wedbush Securities dives deeper into a report by the International Data Corporation (IDC) that Apple has ended Samsung's 12-year reign as the world's largest smartphone seller.
Artificial intelligence is the biggest buzzword at the World Economic Forum’s annual meeting in Davos. Advances in generative AI stunned the world last year, and the elite crowd is angling to take advantage of its promise and minimize its risks.
Smartphones could get much smarter this year as the next wave of artificial intelligence seeps into the devices that accompany people almost everywhere they go.
