What happened to Bed Bath and Beyond!

The framework of Wall Street has been set up for a long time for it to be easier to make money tearing down companies rather than build ones up. #BBBY seems to have been the target of consulting companies like Bain, McKinsey, and BCG, big financial institutions like JPM, B. Riley, and Hudson bay, assets managers like Oak Street, market makers like Virtu Financial, Citadel, Apex, and FTX and political institutions like the Council for Foreign Relations. This is all speculation of course, but from what I can tell from following Bed Bath and Beyond into and through chapter 11 restructuring, they got caught right in the middle of their heist. The needed changes to the framework of Wall Street and the financial system will benefit the world for years to come!

The thesis for investing in $BBBY has been for a long time that Ryan Cohen has a plan to unlock value in the company ever since his letter to the board in March 2022. Our speculations about how that could or would be possible has changed many times over the last 2 years but the faith that despite whatever opposition happened he would prevail has remained strong. This is an overview from my perspective of what has played out. Fraud was officially found on the board which means that some people are about to have to pay up big, and other people are able to now step in and save the company just like they had originally wanted to.

Buy Buy Baby, a subsidiary of Bed Bath and Beyond, has 11 very profitable physical stores, a rapidly growing online store, and plans to open 120 stores over the next year. There is well over $1 billion of net operating loss tax carry-forwards, a very enthusiastic shareholder community, over a billion dollars in active cases which will claw back money for the estate, and potentially much greater than 100% short interest. Depending on whether Sixth Street, the debtor in possession, does a credit bid like they had said in court their intention was, or whether some of the bonds are converted to shares in a debt-to-equity conversion, there is somewhere between $200 million and $1.6 billion for the waterfall distribution to reach shareholders. When shareholders do get back their shares, and resulting margin calls happen on all of the people who were either part of the corruption or bet that the corruption would win, just remember who actually made the "bad bet."

#BBBY will set a precedence, and there will probably be similar financial frauds exposed and people held accountable like the bad actors who fraudulently listed and then halted #MMTLP, all the fraud involved with $AMC, and the same predatory death spiral financing that happened to #BBIG, $FSR, Blue Apron, and countless more. Unlike 2008 where all the executives who orchestrated the crime were paid hundred million dollar severance packages and able to move right on, well funded, to the next big financial crime, this time the criminals should be held accountable, and thrown in jail!
#WallStreetCrime