Activist investor Ryan Cohen completes planned sale of Bed Bath & Beyond stake, stock drops 30%

Activist investor Ryan Cohen quit his retail job Bed bath and beyondaccording to a securities filing released Thursday afternoon.

The deposit shows that Cohen’s RC Ventures sold its shares on Tuesday and Wednesday at a price range between $18.68 per share and $29.22 per share. The company also sold its call options. Cohen said in a filing earlier this week that he intended to sell his meme stock holdings.

Shares of the stock fell 35% in extended trading, adding to a loss of nearly 20% in Thursday’s regular trading session.

Cohen, co-founder of Chewy and president of GameStop, bought more than 7 million shares and call options of Bed Bath & Beyond earlier this year. The company added board members chosen by Cohen and expelled its CEO after RC Ventures revealed its involvement.

Cohen initially bought his shares of Bed Bath & Beyond at an average of around $15.34 per share.

In a statement released Wednesday, Bed Bath & Beyond said it had reached a “constructive agreement” with RC Ventures. in March and was studying potential changes to its financial structure.

Shares of Bed Bath & Beyond have soared this monthfueled in part by retail traders in an apparent revival of the meme trading craze. Shares had risen more than 200% in August as of Thursday’s close.

Bed Bath & Beyond has seen abnormally high trading volume this month, and the stock has become the main topic of conversation on Reddit’s WallStreetBets page. The stock has high short interest, or bets it will decline made by hedge funds, which was one of the main qualities of the names that soared during the meme craze of 2021.

Interest from retail investors has arisen despite the company’s fundamental difficulties. Bed Bath & Beyond reported in June that its first-quarter net sales were down 25% year-over-year, resulting in a net loss of $358 million. The company also reported negative operating cash flow of about $400 million.

The main concern is that its cash could dry up and the company needs to raise new capital to stay afloat.

Bed Bath & Beyond reported about $108 million in cash and cash equivalents in its first fiscal quarter, compared to $1.1 billion a year earlier.

The company had drawn on its existing $1 billion revolving credit facility based on JPMorgan Chase assets, according to its most recent quarterly filing with the Securities and Exchange Commission.

But as the assets that were used as collateral for this ABL facility decline in value, Bed Bath & Beyond will face increased pressure from its lenders to cut costs and find money elsewhere.

—CNBC Lawrence Thomas contributed to this report.

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