Cohen Makes Millions on Bed Bath & Beyond as Meme Traders Recoil

In a new piece of news, retail traders on the other hand may be beginning to feel the pain of pouring millions of dollars into the struggling retailer’s stock, especially if they are late to trade.

Shares of Bed Bath & Beyond that were hammered Thursday fell as much as 43% in a regulatory filing after Cohen’s exit on Friday.

The worst part for the Reddit crowd was Cohen’s massive involvement in the stock which fueled his enthusiasm. At one point this week the price more than quadrupled from its recent low in July.

At least some people pointed to a disclosure showing that GameStop Corp. The chairman of the company was still holding his stake which was more than 10% of the firm at that time.

Cohen, who made his initial fortune as a co-founder of pet supply retailer Chevy Inc., began selling his RC Ventures in mid-January and early March, paying $121.2 million to acquire 7.78 million shares. to be done.

The option to buy another 1.67 million shares, which netted a total this week of $189.3 million, after US markets closed on Thursday, according to a regulatory filing show.

Despite the company’s financials deteriorating in recent weeks, a torrent of cash from traders propelled shares of Bed Bath & Beyond. He bought the stock for $58.2 million on Wednesday, a day after dropping a record $73.2 million.

According to data compiled by Wanda Research, there were a total of $229.1 million in purchases in the three weeks. According to a person with knowledge of the decision, the New Jersey-based union’s company hired law firm Kirkland & Ellis to help it address an unbearable debt load.

A firm known for restructuring and bankruptcy will advise the retailer on options for raising new money, refinancing existing debt, or both. Bed Bath & Beyond’s bonds and loans are already trading at crisis levels.

The sharpest drop came after the company announced disappointing earnings on June 29, though debt fell again after Cohen’s filing. The retailer had a market value of about $1.5 billion as of the end of Thursday.

In a filing on Thursday, the company said it has been working expeditiously over the past several weeks to strengthen its balance sheet with external financial advisors.

Cohen, who was born in Montreal, co-founded Chevy nearly a decade ago and then sold it in 2017 to PetSmart and a British private equity firm for $3.35 billion.

Chewy was known throughout America for its affectionate customer service that included sending hand-painted photos of pets to their owners, but Cohen, who, despite the company’s success, largely stayed away from the limelight, hardly anyone. To.

That changed in early 2021 as a day-long frenzy gripped the country and retail traders fueled a rally in shares of GameStop and a few other firms, before Cohen took a stake in the left-for-dead retailer and made changes. called upon.

He was appointed to the board and later became the chairman. At the same time he became a symbol in the ongoing frenzy of Robinhood merchants. David stands in front of Wall Street Goliath.

That position is now only in flux among some retail investors to cement their position, mixing business messages with criticism from high-paid CEOs and Wall Street vultures.

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