Beyond Shareholders to Recover Nothing Under Proposed Reorganization Plan

WEB

According to a new document filed with the U.S. Bankruptcy Court for the District of New Jersey, shareholders of Bed Bath & Beyond Inc. (BBBY) will not receive any recovery under the company's proposed Chapter 11 reorganization plan.

The plan, which was filed on February 1, 2023, proposes to sell the company's assets to a stalking horse bidder for $1.2 billion. The proceeds from this sale would be used to pay off the company's creditors, leaving nothing for shareholders.

This news is a major blow to shareholders, who have seen the value of their investment plummet in recent months. BBBY shares have fallen by more than 90% since the beginning of 2023, and are currently trading at just $1.28 per share.

WEB Does Ryan Cohen really think Bed Bath and Beyond is a prime investment opportunity Is he trying to transform BBBY in the same way he is

Ryan Cohen, the co-founder of Chewy Inc., has been a vocal supporter of Bed Bath & Beyond in recent months. He has purchased a significant stake in the company and has been pushing for changes to its business strategy.

Cohen has said that he believes BBBY has the potential to be a "turnaround story." He has proposed a number of changes to the company's operations, including closing underperforming stores and investing in e-commerce.

It is unclear whether Cohen's plan will be successful. BBBY is facing a number of challenges, including declining sales and increasing competition from online retailers.

WEB Why Bed Bath Beyond is absolutely primed for an explosion in stock price The telling actions by mainstream media other notable

Despite the challenges facing BBBY, there are some analysts who believe that the company's stock is poised for an explosion in price.

These analysts point to a number of factors that they believe could drive the stock higher, including the company's strong brand recognition, its loyal customer base, and its potential for growth in the e-commerce market.

Additionally, these analysts believe that the recent actions by mainstream media and other notable figures could be a sign that the company is on the cusp of a turnaround.