Bed Bath & Bankrupt

After months (well, years) of attempting to right the ship, Bed Bath & Beyond has finally called it quits. 👎

The struggling retailer was trying to make it until May to hold a special shareholder vote, where it was proposing a reverse split. Executives hoped a higher share price could broaden its investor base and give it more room to raise additional equity capital. 🖖

However, it filed for Chapter 11 bankruptcy protection this weekend as it could not secure enough money to continue operating. The concept isn’t surprising to investors, as the company issued a “going concern” notice following its rough holiday season, but the timing is. Many hoped its recent financing arrangements could extend its life enough to approve the reverse split.

Instead, Bed Bath & Beyond is entering liquidation mode. It has secured $240 million in debtor-in-possession financing from Sixth Street to continue operating through the bankruptcy process. As for who is steering the ship, longtime retail turnaround expert Holly Etlin has that job. She’s been appointed as chief financial officer and chief restructuring officer. 👩‍💼

The company’s 360 namesake stores and 120 Buybuy Baby locations will remain open during the liquidation. And it’s currently commissioning the bankruptcy court for permission to auction off those brand names. However, it’s already committed to closing its Harmon FaceValue stores. 🏬

As for the stock, $BBBY shares tumbled to fresh all-time lows. 📉

While there was once hope the company could restructure, the liquidation process essentially turns the situation into a math equation for common shareholders. How much, if anything, will be left for them after all the company’s other creditors have been paid? That’s the big question. 🧮

For now, volatility will likely continue as longer-term holders determine what to do with their remaining shares (or profitable short positions) and traders capitalize on the record trading volumes.

As for customers, NBC News broke down what they can expect as it winds down operations. 📝

Evergrande Group Resumes Trading

The fears around China’s property market continued to bubble up (no pun intended) as property giant Evergrande Group’s shares resumed trading after seventeen months. 😮

China Evergrande Group last traded on the Hong Kong Stock Exchange on March 18, 2022, and closed at 1.65 Hong Kong dollars. It was suspended after failing to publish its 2021 financial results while also defaulting on its debt. Since then, it’s been trying to save its business operations by restructuring debts and identifying the fair value of its assets and liabilities. ❌

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Buffett Bullish On Homebuilders

It’s 13F and 13D filing season, which means that individual investors are looking closely at what portfolio changes institutional investors made last quarter. 🕵️

One of the biggest names people follow is Warren Buffett’s Berkshire Hathaway. And while you can view all of the financial giant’s holdings here, today, we will look at its recent purchases in the homebuilding sector. 🏘️

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Tinder’s New Tier Costs $500/Month

It was a slow-ish news day today, so the talk of the town was Tinder’s new $500-per-month plan. Like other “zero-interest-rate-policy” (ZIRP) darlings, the company’s parent, Match Group, has struggled to keep public market investors happy in a post-pandemic world. 😓

Growth has slowed significantly, so the company is betting big on premium “power users” who will pay $500 monthly for features like exclusive searching and matching. Tinder Select is currently only being offered to less than 1% of users among the app’s most active. But don’t fret; it plans to open up applications on a rolling basis, so you’ll still have a shot if you didn’t make the first cut.

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Walgreens Boots Its CEO

It’s been a rough ride for pharmacy retailer Walgreens Boots Alliance shareholders, with shares peaking in 2016 and not looking back! 📉

Unfortunately, the pain continued today as the company booted (sorry, mutually agreed) to part ways with CEO Roz Brewer after about three years. The company is replacing the retail veteran as it looks to transition more into a healthcare company instead of a retail drug store. She also left the company’s Board of Directors.

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