Bed Bath and Beyond would be another failed retailer without Ryan Cohen’s meme stock magic.

It’s no surprise that Cohen’s RC Ventures plunged 44% in Friday’s pre-market trading after Cohen’s RC Ventures sold all of its 11.8% stake in the bedding, towels and cookware retailer. In filings filed on Tuesday, Cohen said he could sell most of his stake.

Between the end of July and Wednesday’s closing price, the stock was up 400%, up 40% from before Cohen disclosed its retailer investment in early March. The co-founder of Chewy Chewy Co., Ltd. and chairman of GameStop urged the company to either sell off its baby products division, BybyBaby, or sell it on its own.

Bed Bath & Beyond’s recent share price rise overcomes the company’s current difficulties.

At the end of June, the company broke up with CEO Mark Triton, a former Target CEO who was tasked with revitalizing the company.

Triton has tried several initiatives such as reducing promotions, expanding its online offerings, closing and renovating stores, introducing private brands, and modernizing its supply chain. Although these measures, largely based on his former employer’s successful playbook, were initially successful, they were stopped last year and the retailer was forced to issue two profit warnings.

When it reported disappointing first-quarter results at the end of June, the company said it had too many of its own brands and didn’t have enough of the pseudonyms favored by customers. This strategy exacerbated supply chain problems as many private labels have long lead times and are often procured from Asia. Late stock arrivals, coupled with declining consumer demand, left the company with excess inventory that had to be discounted just like its competitors.

Bed Bath & Beyond has strained its financial position in recent years, returning $1 billion to shareholders. It would have been better to invest this money in the company.

As a result, the company saw a 25% decline in net sales, a loss of $358 million for the three months through May 28. The reduction in excess inventory reduced gross margin, the difference in price between which retailers buy and sell products, by 8.5%.

Bed Bath & Beyond’s long-term debt totals $1.4 billion.

In addition, it spent $500 million in the first quarter, down to $108 million in cash alone, down from $1.1 billion in the previous year. Long-term debt totaled $1.4 billion.

Now it’s important to hire a new, senior CEO to rewire the company and strengthen its finances. On Thursday, the retailer announced it was working “quickly” with financial advisors and lenders to strengthen its balance sheet in recent weeks. The update will be available at the end of August.

Selling Buy Buy Baby seems to be essential rather than a strategy to increase corporate value. You may even have to sell your entire company. However, given the current state of the consumer market, finding buyers can be difficult. Coles issued a sales and earnings warning on Thursday, reminding investors that retail is still tough. Meanwhile, financial markets are frozen, limiting potential buyers. Accordingly, other options such as capital increase cannot be ruled out.

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