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The U.S. Securities and Exchange Commission is probing Ryan Cohen’s ownership and sale of now-defunct retailer Bed Bath & Beyond (OTCPK:BBBYQ).
The regulator has requested information from Cohen about the trades and his communications with officers or directors at Bed Bath, according to a WSJ report on Thursday, which cited people familiar with the matter. The SEC has also asked for information from the company’s current and former board members.
The investigation comes after Cohen purchased a $120 million stake in the houseware retailer Bed Bath & Beyond, which was first disclosed in March of last year, and then sold the entire stake in August 2022. Cohen took a large stake in Bed Bath and urged the retailer to explore alternatives, including a full sale or separating the buybuy Baby business.
Bed Bath & Beyond announced in late March of last year that it had reached an agreement with Cohen that would include independent directors being appointed to the retailer’s board.
A representative for Cohen didn’t immediately respond to Seeking Alpha’s email request for comment after normal business hours.
Cohen, the chairman of Gamestop (GME) and founder of online pet retailer Chewy (CHWY), has garnered acclaim in recent years, especially for his stake in GameStop, specifically among meme-stock traders. News of Cohen’s stake in Bed Bath & Beyond (OTCPK:BBBYQ) in March of last year originally sent its shares soaring 34% on March 6, and a disclosure that he had exited his stake sent the stock plunging 41% on Aug. 19.
Long-struggling retailer Bed Bath & Beyond (OTCPK:BBBYQ) filed for Chapter 11 bankruptcy protection in late April.
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