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Bed Bath and Beyond files for bankruptcy

nytimes.com

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Re: Bed Bath and Beyond files for bankruptcy

#61

Post by ghaff »

zackmorris wrote: post #38

I have no great love for BBB, but they saved me countless times when I was looking for last-minute gift ideas. The store closest to me was always packed, and prices were just enough higher than other stores that I figured they were making bank. As the #1 place people think of for just about anything domestic, I don't know how they could be mismanaged so badly that the whole chain goes under?! On the flip side, they r…

>I don't know how they could be mismanaged so badly that the whole chain goes under?!

They're not the first. Linens n' Things was another big chain in a similar vein that went bankrupt.

Mostly I went into Bed Bath and Beyond if I wanted to actually look at and touch cooking utensils. Their selection tended to be better than places like Target. (Sur la Table is another chain for that kind of thing but there seem to be fewer of those around.)

I assume Bed Bath and Beyond's revenue skewed towards couples setting up a first home.

Re: Bed Bath and Beyond files for bankruptcy

#62

Post by cratermoon »

bombcar wrote: post #42
bookofjoe wrote: post #13

Earlier quoted context omitted.

>I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. I'm not clear on why your next sentence is: >But it is clear they were doing it out of bad-faith to the new investors. Where is the "bad-faith" in caveat emptor?

You know those Prop 65 warnings you see on everything? It's the difference between a company sticking it on everything "just in case" and a company with the CancerTron-9000™ rebranding as "edible low-fat sweets" with that label on it. Every single filing with the SEC contains language that is basically 'holy shit we could go bankrupt tomorrow because billions of reasons' - that's different from "we know we're going d…

My favorite of the moment is 'gluten free'. Seen on things that physically cannot have gluten in them, unless it's contaminated somehow.

Re: Bed Bath and Beyond files for bankruptcy

#63

Post by nate »

I'm gonna miss it. I always thought it had an interesting Job to be Done when I observed my behavior with the store.

We had one a few blocks from my home, and though I order from Amazon like I'm trying to win some kind of game, I'd go to BBB when I needed something that day and didn't want to spend any time on research. It was almost guaranteed that the thing I'd buy would just naturally be at the top of a review site like Wirecutter and it saved me hours or days of research. Like the day my allergies were just nuts and I realized I probably needed an air purifier in the house, and an hour later instantly obtained the best in class product.

During the pandemic they got away from this model and started selling their own copy cat brands. Which some surmise as their final nail in the coffin because no one wanted that stuff. It broke the original Job I had looked for them to solve.

Wonder if there's something that will fill its place. I also thought b8ta had another interesting place there. Instant purchase of something that's on a list you often trust without need to actually research. But clearly it's tough doing retail even with a bunch of fans.

Re: Bed Bath and Beyond files for bankruptcy

#64

Post by itake »

neurobama wrote: post #52
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

The whole stock market in 2023 makes no sense to me, not just Bed Bath and Beyond. So many companies no longer pay dividends. So many classes of stock are now non-voting shares. Common stock shareholders usually get nothing if a company goes bankrupt and liquidates. So if I don't get dividends, can't vote, and am not entitled to a share of the company's assets, what is the actual value in owning stock? Do I just wait…

My understanding is buybacks are better than dividends for tax purposes, because with dividends you pay income tax and buy packs you pay capital gains.

Re: Bed Bath and Beyond files for bankruptcy

#65

Post by cjohnson318 »

zackmorris wrote: post #38

I have no great love for BBB, but they saved me countless times when I was looking for last-minute gift ideas. The store closest to me was always packed, and prices were just enough higher than other stores that I figured they were making bank. As the #1 place people think of for just about anything domestic, I don't know how they could be mismanaged so badly that the whole chain goes under?! On the flip side, they r…

> 19 Kids and Counting

I think the birthrate in the US has been falling consistently for years and years. After people have one kid, they realize how expensive childcare is, and usually don't have more than one more.

Re: Bed Bath and Beyond files for bankruptcy

#66

Post by ghaff »

jjeaff wrote: post #39
addaon wrote: post #35

Earlier quoted context omitted.

40% off actual price, or 40% off list price? Keep in mind this is a company whose business model is to add 20% beyond normal retail price to all items, then distribute 20% off coupons to the entire population of the inner solar system so that people feel like they're getting a "deal" by reducing items to their normal retail margins.

The standard practice for store liquidation is to raise all prices to full MSRP, then start out with a 20% or so storewide discount. Then you start discounting incrementally as products sell off.

The companies that run liquidations know what they're doing. While there's still a lot of stock in the store, the "bargains" that people rush in to get mostly aren't. And, by the time there are genuine bargains, things have been pretty picked over and I also suspect a lot of people buy bargains at that point that they don't need and wouldn't otherwise get.

Re: Bed Bath and Beyond files for bankruptcy

#67

Post by criddell »

patrickthebold wrote: post #32
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

Random thought and I figure there must be a law against this: But what about the opposite, could a company sell off it's assets and do stock buy backs right until it goes bankrupt so that some investors get more $ ahead of the creditors?

I've thought about that before.

Would it be technically possible for a company to buy all of its shares back so that there are no owners? The company would be self-owned.

Re: Bed Bath and Beyond files for bankruptcy

#68

Post by mech987987 »

neurobama wrote: post #52
humanlion87 wrote: post #8

I find the whole situation fascinating. Bed Bath continued to sell hundreds of millions of shares while they were preparing for bankruptcy and retail investors (or meme stock investors) continued to buy them. I assume Bed Bath did all the paperwork that is necessary (like calling out risks, that the raised capital will go to creditors first, etc) for such a stock sale. But it is clear they were doing it out of bad-fa…

The whole stock market in 2023 makes no sense to me, not just Bed Bath and Beyond. So many companies no longer pay dividends. So many classes of stock are now non-voting shares. Common stock shareholders usually get nothing if a company goes bankrupt and liquidates. So if I don't get dividends, can't vote, and am not entitled to a share of the company's assets, what is the actual value in owning stock? Do I just wait…

When a company liquidates, bondholders are paid out before stockholders. This is to prevent moral hazard from companies going deep into debt and running off with the cash by liquidating the company.

Re: Bed Bath and Beyond files for bankruptcy

#69

Post by SkyPuncher »

zackmorris wrote: post #38

I have no great love for BBB, but they saved me countless times when I was looking for last-minute gift ideas. The store closest to me was always packed, and prices were just enough higher than other stores that I figured they were making bank. As the #1 place people think of for just about anything domestic, I don't know how they could be mismanaged so badly that the whole chain goes under?! On the flip side, they r…

I've found they always ended up in this weird "quality" gray area.

They sell a bunch of mid-tier items that don't really offer any actual quality or value over low-tier items. For items I really care about, I can spend a bit more and get an actual, high quality item.

Re: Bed Bath and Beyond files for bankruptcy

#70

Post by noncoml »

Animats wrote: post #45
bearjaws wrote: post #31

This is a huge loss IMO, buying kitchen supplies and bedding on Amazon is complete shit. Target isn't much better due to lack of variety and types of bedding. I've bought the same bed sheets for 5+ years, a few months ago I bought new ones since some bleach got spilt on one set, it comes in and I could tell immediately the quality was far worse. One wash later, its ripping & fraying. Thankfully I could return them. S…

I want to buy a mattress. Mattress review sites are all phony. Amazon is all phony reviews. Mattress FIRM is hugely overpriced. Bed, Bath, and Beyond's brands were just names they'd acquired. That entire industry has managed to shoot itself in the foot. Probably better to order from an actual manufacturer on Alibaba.

Arizona Premium Mattress. It’s basically, build your own mattress. Only down side, they are slooooooooow
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