Bed Bath & Beyond said Thursday it doesn’t have enough cash to pay down its debts and it has defaulted on its credit line with JPMorgan, warning once again of a potential bankruptcy. Last time I wrote about Bed Bath & Beyond was when Meme king Ryan Cohen pumped and dumped the BBBY 0.00%↑ stock with the stock price peaked around $23 in August. BBBY 0.00%↑ stock closed at $2.55 today.
As mentioned in my previous post, Bed Bath and Beyond has a negative book value, is bleeding hundreds of millions of dollars a year and only had ~$100 million dollars of cash at hand back in August. It’s no surprise that Bed Bath. & Beyond is now defaulting and the /r/wallstreetbets voting machine is proved wrong again. No amount of positive sentiment can save a poorly-run cash-crunched money-losing business. I don’t understand why people wasted money on BBBY 0.00%↑ stock. But I do know some people will never learn and they are so predictably irrational that manipulators like Ryan Cohen and Justin Sun take advantage of them over and over again.