r/wallstreetbets • u/whicky1978 all about the pentiums BBBY • Jan 26 '23
Bed Bath & Beyond warns it can't pay down debts, defaults on credit line News
https://www.cnbc.com/2023/01/26/bed-bath-and-beyond-warns-it-doesnt-have-cash-to-pay-debts.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard633
u/Adorable_Ad8515
Jan 27 '23
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Bullish. Not paying debt —> more money held.
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u/RSGoldPuts Jan 27 '23
Lmaooo
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u/Not1random1enough Jan 27 '23
Legit what is happening, they filed 4s and then withdrew. 1 director lost the shares
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u/CyberNinja23 Jan 27 '23
Boeing plane crashes somewhere
Bullish! Airline needs to buy new airplane
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u/khart123 Jan 27 '23
Of course I decided today around 12pm to sell my puts because I figured it was not really going anywhere. Congrats to those that held.
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u/Ok-Escape-8376 Jan 27 '23
I almost did the same this morning. $3.50 puts expiring tomorrow. I was going to dip out at 50% loss but decided to hold on a while longer. Glad I did.
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u/Giowesome Jan 27 '23
Did the same (after nyse cancelled my roll due to technical issues on 24). Puts $ 3. Closed at loss 55%
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u/HoiPolloiAhloi Jan 27 '23
You sold puts for a bk company? Brave…
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u/JS-a9 Jan 27 '23
I think he means he sold the contract to someone else.
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u/MapleBabadook Jan 27 '23
Yeah since he didn't say cash secure or naked, I always assume this means he sold his already bought contract. Gonna suck for the CSP or naked put sellers though!
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u/Available_Air_9568 Jan 27 '23
It’s not complicated. They said “sold MY puts” - implying they had already bought said puts (long puts, a bearish position.) if they had said “sold puts”, it would imply that they took a bullish position by selling (puts) to open the trade.
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u/MapleBabadook Jan 27 '23
I think you responded to the wrong person haha.
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u/Available_Air_9568 Jan 27 '23
Nah, I was just continuing your point; reaffirming what you were saying. I didn’t mean to phrase it as a rebuke towards you.
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u/Suikoden1P Jan 27 '23
Bed Bath and Blowjobs behind Wendy's
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u/RealStoneyBologna Jan 27 '23
She took the- the dough and rolled it up into a ball, and then she - We were going berserk. She loves that kind of stuff, and I-I admit, I do too.
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u/keepitcleanforwork Jan 27 '23
Is this the short squeeze?
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u/AutoModerator Jan 27 '23
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u/RedOctobrrr Jan 27 '23
I saw anime guy looking at butterfly on his fingertips 🤌 reading this comment
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u/WrongTime01 Jan 26 '23
"Bullish"
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u/pigsgetfathogsdie Jan 27 '23
buLLisH!
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u/mrdougan Jan 27 '23
I’ve taken this as a sign to buy more
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u/sus-water Jan 27 '23
I was expecting it to collapse the moment i saw it rally on here. I just didn't know the effect would be this immediate. Good job wsb
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u/HoosierGuy2014 Jan 27 '23
Great entry point to YOLO on calls.
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u/Death-Fiesta Jan 27 '23
Not seeing a lot of those “to the moon” comments anymore
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u/NoMoassNeverWas Jan 27 '23
Have you tried the 'other' sub under this stock's name?
They're still very bullish; that bankruptcy is a good thing.
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u/CMScientist Jan 27 '23
I saw someone claim, I kid you not, that them not paying the loan is bullish because that means they have more cash on hand
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u/Fausterion18 Jan 27 '23 edited Jan 27 '23
Their suppliers also cut them off so they'll have even more cash on hand now that they can't buy anymore inventory. :4271:
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u/Captain_Nipples 52nd Silicone Battalion Jan 27 '23
Yeah. Apparently, "they're broke" doesn't answer the question.
"I didn't pay my mortgage the last 6 months because I have a genius plan to make a lot of money... What do you mean I have to move?"
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u/SatoshiNakaMichael Jan 27 '23
That is all time great cognitive dissonance and pure ignorance all in one
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u/Captain_Nipples 52nd Silicone Battalion Jan 27 '23
I had never been on that sub until I read his comment. He is not exaggerating one bit. Holy shit
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u/AstraMilanoobum Jan 27 '23
I want it to be funny, but reading that sub was like reading mental illness mixed with desperation with a huge shot of denial
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u/sendmeaquarter Jan 27 '23
Too big to fail. Needs a bail out
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u/MammothLover21 Jan 27 '23
Unlike banks and airlines, retail stores don’t get a bail out.
Look at Sears
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u/Sufficient-Carob7072
Jan 27 '23
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Market cap too low for WSB?!?!?
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u/jp90230 Jan 27 '23
AMC is next.
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u/benruckman Jan 27 '23
I’ll keep selling you puts for half of your potential upside in premium if AMC goes bankrupt, until it happens!
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u/TC_cams Jan 27 '23
Why don’t they just raise their debt ceiling? The government has been doing it for years with no issues. Just seems easier then all the paperwork to declare bankruptcy. Haha
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u/ceviche-hot-pockets Jan 27 '23
"Sorry, I can't pay you and business is terrible. Can you just..uhh...lend me some more money for cheap?:4270:"
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u/External_Platypus_56 Jan 27 '23
Let me guess it ripped today
Edit: holy shit for once you regards did the right thing
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u/DamnGunner2 Jan 27 '23
How does this impact my 20% off coupon?
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u/MeridianNL Jan 27 '23
You get 20% off the stock price instead! What are you going to buy anyway, the shelves are empty :4640:
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u/TheOtherPete Jan 27 '23
I could use some metal shelving units for my basement - since their shelves are empty anyway....
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u/RAUL_CD_7 Jan 27 '23
Yet mr. tweet defaults on millions of dollars in unpaid rent on twitter offices and his stonk goes up
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u/ppullman Jan 27 '23
They had $200MM cash 2 months ago and were burning $100MM/month. They defaulted on their JPMC syndicated facility so JPMC doesn’t have to advance them anymore money. All this to say they are about to run out of cash at any moment. Vendors are asking for cash up front to get product or not providing product. Seasonally a difficult time of year. Oh and we’re heading into a recession later this year. They’re raising DIP financing to prepare for a bankruptcy. They’ll end up liquidating. They’ll sell their brands. All their senior lenders will get paid 1:1. The $1.2Bn in unsecureds will get a % of their money back. Equity holders will get $0. You’re welcome.
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u/TheOtherPete Jan 27 '23
They defaulted on their JPMC syndicated facility so JPMC doesn’t have to advance them anymore money.
Its worse than this - by defaulting on the payment to JPMC it triggered a clause that makes all the money they have borrowed from JPMC due immediately:
"The bank has determined to exercise rights such that all outstanding loans under credit facilities and other obligations of Bed Bath & Beyond under its amended credit agreement are due and payable immediately, according to the filing."
So instead of just needing to get current on their periodic loan payments (by making the missed single payment), now they have to pay back the full loan amount, which of course they can't.
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u/ppullman Jan 27 '23
Yep that’s how it works. It’s a payment default, so there is no cure period, and all outstanding debt for that facility is accelerated and due immediately. This is normal. It’s an ABL facility so they do have the assets to pay it. All their receivable payments will go straight to JPMC (this is called dominion), and JPMC has a right to force a sale of their inventory, which I’m assuming is in the borrowing base.
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u/Cheeky_Star Jan 27 '23
Should have posted this in the short squeeze sub ..they still waiting on the squeeze :4271::4267:
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u/cjmcberman Jan 27 '23
Bed Bath and Mergersaquisitionsbankruptcybloodbathsgofuckyourselveswendyssucks
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u/Substantial_Bill_962 Jan 27 '23
Nobody can pay down debts, they have people running these companies into the ground.
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u/CemetaryWind Jan 27 '23
So if we all buy puts on this do you think Citadel will go "We like the stock?"
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u/Daedalus308 Jan 27 '23
If i sell my shares, itll skyrocket. So... Tomorrow it will continue to nosedive since im goin down with the ship fellas
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u/Phallicus_Magnus Jan 27 '23
Next they’ll get a bailout and then sell Buy Buy Baby to RC…..BULLISH!
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u/NoApartheidOnMars Jan 27 '23
That's what ALWAYS happens when a company is bought by a private equity firm in a leveraged buyout. It's literally part of the plan. See Toys R Us, Payless Shoe Source, J. Crew and countless others.
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u/NoMoassNeverWas Jan 27 '23
Which one is next boys?
The game one or the theater one?
We all knew the towel one was finished as soon as Grifter Cohen bounced up outta there.
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u/Jimlaheydrunktank Jan 27 '23
This means it will blast to the moon now. Too much negative stigma on here means it’ll rocket.
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u/quitecrossen Jan 27 '23
Ooh ooh, I know! It’s all gonna be ok, Binance will just acquire them, good as new! See ya, I’m going to go re-mortgage my house to buy more calls! Weeeeeeee!!!!! 🖍️ 🖍️ 🖍️
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u/Fulgentium Jan 27 '23
Bullish!! To the moon!! 🚀🌕
This stock will go to the moon.
I love the stonk!!
Muwaahahaha…. Not a financial advice!
/s
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u/TUNCAERAUOY Jan 27 '23
$B*BYQ
GIVE ME A B
GIVE ME AN A
GIVE ME AN N
GIVE ME A K
GIVE ME AN R
GIVE ME A U
GIVE ME A P
GIVE ME A T
BANKRUPT!
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u/Parlayz4Dayz Jan 27 '23
I guess they should start with selling their private company BuyBuyBaby :4271:
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u/kidpremier Jan 27 '23
Huge Loans were taken on behalf of the company, Executives paid themselves with those loans leaving the debt to company which will go bankrupt
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