Tendie Baron Profile picture
Aug 31 14 tweets 2 min read
Bed, Bath & Beyond released their strategic update today

Here's all you need to know, in a 🧵👇
I'll start with the elephant in the room:
$BBBY announced that they will offer up to 12 Million shares on the market
The #BBBY buyback program was a FAILURE.

Average buyback price last 2 years: $21.37
Average buyback price since December 2004: $44.68

Today, Bed, Bath & Beyond announced they'll offer 12 million shares, current price is substantially lower at ~$9
Investors are mostly responding to the announced share offering, rather than all of the other changes the company has made, which eliminate short term bankruptcy

Here's what they've announced as well:
Bed, Bath & Beyond secured $500 million in new financing

This including an increase on the ABL facility and the $375M FILO facility from Sixth Street Partners
Bed, Bath & Beyond will close 150 low-performance BBBY stores (~20% of total stores) and will reduce their workforce by 20% in both corporate & supply chain.

This will reduce SG&A by $250 million in FY2022 and lower the forecasted capital expenditures to $250MM, down from $400MM
BBBY will discontinue 3 of its 9 labels and will bring back national brands inventory
BBBY will keep BuyBuyBABY, and will be focused on building its full potential with digital and registry platforms.
Leadership changes:
👉Terminated Chief Operating Officer position
👉Appointed New EVP & Brand President on BBBY
👉Appointed New EVP & Brand President on BuyBuyBABY

The company will continue to search a CEO
Interim financial update shows that sales have declined -26% in Q2FY22 vs Q2FY21, this is inline with previous guidance
TL;DR on BBBY's Strategic Update:
👉 Share offering of 12MM shares
👉 Expanded $500 MM in new financing
👉 20% reduction of workforce & stores
👉 SG&A reduced $250MM in FY22, CapEx reduced $150MM
👉 The company will hold & build on BuyBuyBABY
👉 Short term bankruptcy eliminated
TL;DR on BBBY's Strategic Update:
👉Share offering of 12 million shares is bad for a FTD squeeze play but Freeman + RC sold more than that. With over 2 BILLION sh traded in the past 5.5w (over 25x shares outstanding) wouldn't kill it per se imo
👉Short term bankruptcy eliminated
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Thanks for reading🧡

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More from @TendieBaron

Aug 19
What a rollercoaster of events in $BBBY

In this thread I give both a 🐂 and 🐻 take on what's next
Ryan Cohen, famously known for being the chairman of GameStop, bought a 9.8% stake in Bed, Bath & Beyond in March this year. This purchase also included far OTM calls at strikes 60, 75 and 80

Back then, the price rallied to $30
In his letter, he specifically expressed interest in Buy Buy BABY, saying he wanted to make it the Ultimate destination for babies. His plan was to spin off to lower debts on BBBY

Since then, Ryan Cohen fired the previous CEO and installed 3 of his own boardmembers.
Read 13 tweets
Aug 18
$BBBY Ryan Cohen sold all his shares & calls... BUT:

There is a rule for transactions of 10%+ shareholders, which states that "any profit realized by the insider as a result of the two transactions (i.e., as a result of the “short-swing trade”) must be disgorged to the issuer
Does this mean that Bed, Bath & Beyond will get the profits from Ryan Cohens share purchases?

The profit on his shares is $58,676,002.03
Source on rule of securities transactions by 10%+ shareholders:
Read 4 tweets
Feb 19
What are #CitadelScandal & #KenGriffinLied ?
And why are these hashtags important?

👇Here's a thread to refresh and/or learn 👇

$GME #GME #GMESQUEEZE #MOASS #MOASS2022 #shortsqueeze #DOJ
2/ In January'21 GameStops stock price ran up dramatically as retail found out it was 140%+ sold short.

On 1/28/21, RobinHood and some other brokers decided to take away the buy-button for retail on $GME, amongst a few other tickers.

This action was unprecedented & unlawful.
3/ On February 18th, there was a congressional hearing on the GameStop events.

Ken Griffin was asked if anyone in his organization had contact with RH about restricting or doing anything to prevent people from buying.
He replied: "Let me be perfectly clear, absolutely not"
Read 10 tweets

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