Bed Bath & Beyond (BBBY) filed for Chapter 11 bankruptcy protection on Sunday after several attempts to save itself. Jerry Storch, Storch Advisors CEO and former Toys "R" Us CEO, joined Yahoo Finance to discuss who could benefit from Bed Bath & Beyond’s collapse.
“Their business will go to places that have good registries for wedding registries. It will go to places that have strong baby departments and baby registries. So it's going to go to the guys who are already big. It's going to go to Target (TGT), it's going to go to Walmart (WMT), it's going to go to Amazon (AMZN),” Storch told Yahoo Finance.
He also shared what he called a “sad truth,” that Bed Bath & Beyond has been in decline for so long that he doesn’t think anyone will notice that it’s gone.
Key video moments:
00:10 On Bed Bath & Beyond’s decline
00:29 On possible winners from Bed Bath & Beyond collapse
00:38 “I don’t think anyone is going to notice.”
- Jerry, are there any winners in this story. Whether it be a Walmart, or a Target, or even those in the ecommerce space.
JERRY STORCH: Honestly, they took the share a long time ago. They've been declining at 20%, 30% year over year in sales for two years now. So, so there isn't that much business left to be, left to be had, that they haven't already taken. But their business will go to places that have good registries for wedding registries. It will go places that have strong baby departments and baby registries.
So it's going to go to the guys who are already big. It's going to go to Target. It's going to go to Walmart. It's going to go to Amazon. And whatever's left, if there is anything, it'll just get split up. I don't think anyone's even going to notice. That's the sad truth at this stage. It's gone so far south, and it's gone so far south so fast, there isn't that much left in terms of spoil to divide up.
And I will say, once you get your hands on this company, once it becomes part of so-called restructuring experts running it, which is where you are now, between the fees for the restructuring actually, the fees for the bankers, the fees for the lawyers. While the consumer experience is worse than ever, I don't think there's much of a chance that it's going to be anything except a bunch of vultures dividing up whatever's left, giving it to the highest tiered creditors as Laura said, and then going out of business.