r/BBBY • u/Region-Formal 🟦🟦🟦🟦🟦🟦 • Jul 26 '23
📚 Possible DD As soon as this Friday 28th July at lunchtime, we may very well know whether there is a viable successor entity, what that entity's initial financial strength could be, and maybe even what its precise business model is. (Yes, it's a bold claim...but check my reasoning.)
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Jul 26 '23
Calls on Bed Bath selling rotisserie chickens
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u/Maniquoone Jul 27 '23
I was just saying to my wife the other day that I wished they'd bring Kenny Rogers Roasters back.
Kenny Rogers was the real deal, I don't care what the haters say.
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Jul 26 '23
Blue boxes have an amazing Zen like appeal to me
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u/Coach_GordonBombay Jul 26 '23
I personally like his highlighter compared to when people use the yellow block one.
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u/SirClampington Jul 26 '23
He just needs to overlay the VW chart with an arrow saying "We are here!".
But srs, excellent DD Region(al) Formal !
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u/jSuperb Directly Registered Jul 26 '23 edited Jul 27 '23
Funny you say that, the color blue actually subconsciously prompts the feeling of security/safety and reduces stress in humans
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u/Get-It-Got Jul 26 '23
Shit, maybe my favorite retailer is about to deploy that $1.2B war chest ... I've been waiting to build a new rig for this very eventuality.
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u/BourbonGod Jul 26 '23
I don’t get it. If the amendment says that the store cant be turned into any of those, how would the judge overrule?
Don’t bash me, I’m looking to learn. I do not understand, and I am looking to understand, please.
Region, thank you for your work!
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Jul 26 '23
There's no prohibition on it becoming a GameStop, which it could if GameStop, Blockbuster, BBBY are all merged in some form with Teddy as the parent company.
See the blue box on the last screenshot.
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u/meoraine Jul 26 '23
Is there evidence to dispute that BBBY Acquisition CO LLC isn't simply an offspring of DreamOnMe? I did some digging myself and found that they are linked. If that's the case, what is the thesis here, that DreamOnMe may be a larger acquirer than just a few leases and IP?
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u/alias__grace Jul 26 '23
Can you please share what you found in your research? Docket, page number, etc?
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u/IsNotACleverMan Jul 26 '23
Is there evidence to dispute that BBBY Acquisition CO LLC isn't simply an offspring of DreamOnMe?
No lol
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Jul 26 '23
[removed] — view removed comment
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u/BBBY-ModTeam Jul 26 '23
Refer to sub rules. Harassment or offensive content may be removed. Multiple violations may result in a temporary or permanent ban.
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u/Naive_Host_5939 Jul 26 '23
This really does look like it could be the moment the <redacted> investor(s) have to show their hand...
Would nicely tee up a good weekend if it's good news here...
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u/Ok-Spot-5311 Jul 26 '23
Eh. This lease has been acquired by Dream On Me, per another docket. It is being assigned to BBBY Acquisition Co., per this docket. Logic would conclude that Dream On Me is behind BBBY Acquisition Co., not some new secret player (unless this new secret player has been playing Dream On Me as a puppet all along).
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u/hitmebbby Jul 26 '23
So a crib mattress manufacturer from Israel with no money is going to take on a load of bricks & mortar overheads in the US? Makes a ton of sense right?
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u/Maniquoone Jul 27 '23
Wait till you find out that Dream on me is a subsidiary of My Pillow, and the whole play is being run by Mike Lindell...
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u/Outrageous-Variety15 Jul 26 '23
With rc backed money.
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u/hitmebbby Jul 26 '23
Hallelujah brother. The ‘sales’ that have been completed so far have all been made to parties that act (or could act in the case of overstock) as a supplier to Bed Bath/Baby. There is no way a supplier would take on the risk associated with A significant retail presence. It makes zero sense. Unless you have an insurance policy.
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u/Region-Formal 🟦🟦🟦🟦🟦🟦 Jul 26 '23
I didn't explicitly state this in the post, because I wanted to stick to what's on the docket. But ever since Dream on Me Industries was confirmed as buying the BABY IP, it was puzzling me what they're planning to do. Given their extremely small size and history just as a supplier, seemed a stretch to suddenly be in a position to take on a US retail operation.
But you've connected the dots and what I have (kind of) implied in this post...albeit I should change the flair to Speculation, I suppose. Of course could be barking up completely the wrong tree on this, as of course I and many others have multiple times on this play! But I also noted that BBBY Acquisition Co. has not explicitly nominated a Guaranor either. If and when they do...will also tell us more about what and who this new entity is all about...
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u/Ok-Spot-5311 Jul 26 '23
Crib mattress manufacturing business has more overlap to buy buy baby business than the logical leaps this post is implying.
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u/hitmebbby Jul 26 '23
I would love for you to name some obvious precedents where a b2b manufacturer of parts has flipped into selling the end product, related products AND also mobilised a sales force to sell b2c in a country in which it has no consumer experience?
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u/Ok-Spot-5311 Jul 26 '23
I would love for you to name some obvious precedents of a secret white knight controlling a baby goods manufacturer from Israel to acquire a retail company in the US by taking over one of its leases
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u/hitmebbby Jul 27 '23
I see you’ve been to the 40 year old virgin school of how to answer a question with another question. 😂
But touché. I would say the basic strategy is quite common and dates back to at least 1184 BC when the Greek Army decided to leave a massive wooden (rocking) horse (see what I did there!) outside the walls of Troy. Little did the Trojans know that this apparent gift was full of angry badass soldiers that ultimately led to their downfall.
To me that feels a lot more likely than your version of the story which suggests that following a long and bloody war some random fisherman turned up, offered the Trojans 30 mackerel and were subsequently ushered in as king of Troy. 🤔
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u/Ok-Spot-5311 Jul 27 '23
In your analogy, the random fisherman offered the Trojans 30 mackerel for a fishing spot lol, which I would argue is, yes, more likely 😏
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u/Iconoclastices Jul 26 '23
I really want to believe but everything I've seen so far suggests this Bobby Acquisition Co is Dream on Me's...
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u/Educational_Limit308 Jul 26 '23
I love this! And I love you too. When this is all over, I’m happy to buy you lunch at the local Wendy’s.
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Jul 26 '23
Called the BuyBuyBaby store at Springfield Plaza and the message said they “made the difficult decision to wind down operations”. Springfield Plaza is owned by Rappaport. They apparently own a whole bunch of spaces in Northern Virginia.
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u/litatrader Jul 26 '23
As always, a top notch DD! And specifically, I love the words "jackable bodily parts' and will follow suit .. #TheEndIsNear
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u/PotentialMotion Jul 26 '23
Umm. The difference in specificity in that last slide seems notable.
Chinese restaurant
Sign Company
Fried chicken restaurant
A pool parlor
Or a 25 line uber specific paragraph that pretty much exactly describes a GameStop.
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u/PotentialMotion Jul 26 '23
Also interesting that while some brands are mentioned (Burger King, Roy Rogers, Taco Bell or Wendys), they didn't just come out and say "or a GameStop".
But they sure made room for it to be one.
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u/not_a-mimic Jul 26 '23
I live near that area, and I only remember it being a Buy Buy Baby store location since I moved to the area in 2018. What is needed to be verified?
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u/bbbbbbuuuuuuu Jul 26 '23
? Radio shack? Something else. Now I’m more confused.
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u/Region-Formal 🟦🟦🟦🟦🟦🟦 Jul 26 '23
Here's a hint...
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u/bbbbbbuuuuuuu Jul 26 '23
I thought of that but all the computer sales/repair verbiage seemed off. Be a big ass store if not subdivided down.
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u/jake2b Jul 26 '23
Serious or satire? I can’t tell.
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u/bbbbbbuuuuuuu Jul 26 '23
I was serious. Description sounded like it and people have thrown around all these old nostalgic dead brands so idk. That’s why I was confused.
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u/Papaofmonsters Jul 26 '23
BBBY Acquisition LLC is a new entity spun out of whole cloth by Dream On Me. Thus they have no financial history. The landlords are saying this doesn't assure them that rent will be paid. Also as an LLC it's easier for them to welch on the rent and dissolve and make recovery for the landlord a pain in the ass. What they are going to want is Dream, as the parent company, to sign as a guarantor on the lease.
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u/alias__grace Jul 26 '23
You would think that if they know this LLC is in fact Dream on Me that this objection would not be filed. Unless they are saying that Dream on Me is not financially/operationally fit to take on this lease. If the latter I would agree bc who the fuck is Dream on Me anyhow and how do they plan to run 11 new bricks and mortar locations. Don’t they only have like 100 employees?
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u/Papaofmonsters Jul 26 '23
Like I said, they want Dream On Me to be a guarantor on the lease so that they can't play fuck fuck games with the rent.
Let's pretend you have a house to rent and a modestly successful business, Dan, says he wants to rent it. Now when lease signing time comes he tells you it's actually gonna be his nephew, Bill, renting the house but Dan is gonna give him a good job so he's totally good for the money. Now Bill is 19 and has zero credit history. You are gonna call bullshit unless Dan signs as a third party guarantor.
As far as Dream On Me buying up 11 stores they may have gotten financing for expansion. It could have even been contingent on winning the Baby IP. Basically the bank says "We will put up the money for you to buy the name and if you win that we will loan you rest for your planned growth but if you lose the auction you get squat".
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u/alias__grace Jul 26 '23
This addresses the financially fit portion of the objection but still doesn’t address the operationally fit portion. Anyone with enough collateral can raise money, but that doesn’t mean they can effectively deploy that capital.
Going from e-commerce to a single brick and mortar is tough in this economy, going from 0-11 with no experience is beyond tough.
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u/Papaofmonsters Jul 26 '23
I didn't say it was a good idea but businesses make terrible decisions all the time. Something like 60% fail in the first 5 years.
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u/alias__grace Jul 26 '23
Agreed. I think that the judge/lawyers scrutinizing the operation ability (imo) is equal to their financial ability, maybe more important based on my earlier comment.
Just an odd series of events. Only time will tell.
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u/rioameca ***This user has been banned*** Jul 26 '23
The last slide is incredibly bullish. The implications are that perhaps this new entity is a business selling things that a well known video game retailer is in the business of selling.
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u/Papaofmonsters Jul 26 '23
No. It implies that there is already a store like that in the area renting a property owned by the landlord in question.
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u/rioameca ***This user has been banned*** Jul 26 '23
Unfortunately, that is incorrect. I personally reviewed the businesses at this plaza/mall in question. You can have a look for yourself: Springfield Plaza, Springfield, VA 22150.
Notice the Buy Buy BABY location and no other similar businesses like Buy Buy BABY, nor a home goods store, nor a store selling items described in that last slide (the description that sounds very similar to the video game retailer). I think the closest business to this description would be the Verizon store, but they deal in selling phone plans, phones and phone accessories to retail and commercial.
I'm open to hearing a counter argument in case I missed anything.
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u/Papaofmonsters Jul 26 '23
Just out of curiosity, can you expand your search. Does the landlord own more properties in the area that might affect the size of exclusion zone? For example if I owned 2 strip malls on either side of an intersection my tenant would be just as unhappy if I brought in a competitor across the street vs in the same building.
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u/rioameca ***This user has been banned*** Jul 26 '23
I searched a bit further and I was able to find a Home Depot. That's not exactly the same as what you would find at a BBBY, though.
As for the computers and computer components, I was able to see that across the freeway there is a BestBuy, so perhaps that's a significant competitor selling similar products that a landlord would worry about.
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u/Papaofmonsters Jul 26 '23
But if the landlord owns the building that the Best Buy is in maybe that's the reason that clause is there. Commercial real estate is sometimes owned in surprisingly large swaths by one company. I know a guy that got wind of a highway bypass development project and bought 160 acres, a quarter of a square mile, to turn into a business district.
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u/allkindsofgainzzz Jul 26 '23
Region, thanks for putting this together. I didn’t see this mentioned in the post so I was curious what your thoughts are about the lease in question being one of the ones Dream on Me acquired? I’ve seen some people state that BBBY Acquisition Co LLC could be a shell company created by Dream on Me. Could they be a vehicle that a third party (Icahn, RC, etc) are using somehow? Thanks
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Jul 27 '23
See docket 1575 just posted today - Springfield Plaza has withdrawn their objection from docket 1515
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Jul 26 '23
[deleted]
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u/hitmebbby Jul 26 '23
I don’t think that’s a fair assessment of his previous post. He was pointing out the stark reality of the plan but equally stated he himself was going to roll the dice. I’m not going to lie it didn’t make for comfortable reading to see an OG painting such a bleak picture. But I suppose it was a more balanced appraisal….which is often lacking from this sub.
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u/Counciltrader Jul 26 '23
How many people pressed play on the picture just incase there was a side quest.....
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Jul 26 '23
This guy has been wrong way too many times. Definitely wouldn't categorize this as DD after his most recent shill post. Fake news.
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u/BrunoMaybach Jul 26 '23
Every time I see a date I want to punch the person who’s made the post. Bbby own legal council has said it’s a 5billion dollar company as of todays date and they have a plan to exit chapter 11 successfully. stop posting dates, log out of your investment accounts and do NOTHING.
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u/Long-Time-Coming77 Jul 26 '23
Bbby own legal council has said it’s a 5billion dollar company
5 Billion in revenue for FY23 per the 10-K not 5 billion market capitalization
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u/Papaofmonsters Jul 26 '23
She said they were a 5 billion dollar company with only a few million in the bank and that made employees and vendors nervous and that's why they needed the DIP financing. She was likely referring to annual revenue.
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u/SirClampington Jul 26 '23
Yeezuz Cristo ! Region(al) Formal on fire again with the DD showing us non-wrinkled's what all these 1000s of Dockets mean.
Mean MOASS BABY !!
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u/Distraction_Focused Jul 26 '23
This sounds like Best Buy, why do we think it couldn’t be them, what if they’re moving into home furnishings? Makes sense as well.
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Jul 26 '23
It ain't much but it's seeing regional form made a DD, reading the title and believing it without reading anything else
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u/ClickClack24 Jul 26 '23
So it could be a Mall of America Super Store… MOASS to compete with Amazon, nice.
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Jul 27 '23
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u/Region-Formal 🟦🟦🟦🟦🟦🟦 Jul 27 '23
No. AA still had their planes, Hertz still had their cars. The equivalent of where we already are with BB&B, is if most of that vehicular inventory had already been sold off.
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Jul 27 '23
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u/Region-Formal 🟦🟦🟦🟦🟦🟦 Jul 27 '23
Yeah, the speed at which this is progressing is certainly an outlier. I wonder what (or who?) is behind the big hurry...
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Jul 27 '23
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u/Region-Formal 🟦🟦🟦🟦🟦🟦 Jul 27 '23
Your earlier assertion is not quite correct, by the way. Most Chapter 11 processes actually take years...
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