To The Moon

$Bed Bath & Beyond(BBBY)$ — founded in 1971 and went public in 1992 — will eventually close all its retail stores. From $81 a share in 2014 to $0.1 yesterday, BBBY stock has lost almost all of its value.

$Bed Bath & Beyond(BBBY)$ failed to raise $300 million by April 26 to avoid bankruptcy. As a result, the retailer with 52-year history filed for bankruptcy.

Is online shopping the main culprit behind BBBY's bankruptcy?

To be sure, the rise of $Amazon.com(AMZN)$ did not immediately drive BBBY out of business.

As the Times reported, BBBY’s stores “full of towels and kitchen aids — all available at a reduced price with that big blue coupon,” kept shoppers coming back after the 2008 financial crisis while rivals went bankrupt.

While BBBY withstood competition from Amazon, it wasn't Amazon that brought BBBY to its knees, it was their own misadventures in private labeling.

Why BBBY Went Bankrupt?

BBBY made the mistake of swapping out their well-known branded products with private label ones.

In 2019, activist investors took control of the board and brought in a CEO who implemented the same private label strategy that had worked for them at Target.

Bed Bath & Beyond CEO Mark Tritton's turnaround shows patience is key

However, this decision backfired as BBBY's customer base was different from Target's. With customers no longer finding the products they expected on BBBY's shelves, they started shopping elsewhere, leading to a decline in sales and draining the company's cash.

What’s Next For BBBY Stock?

If you own BBBY stock, you will likely take a loss.

In the bankruptcy process, BBBY shareholders are last in line to get paid — after all those creditors — when the company’s assets are liquidated. Simply put, bankruptcy is unlikely to leave any cash for shareholders.

However, some investors are betting on a dead cat bounce.

Is dead cat bounce possible?

How do you view the fall of physical retail store?