Bed Bath & Beyond shares soar more than 100%
Cohen, who is the current CEO of GameStop and the co-founder of online pet retailer Chewy, said the retailer is struggling to reverse market share losses and tackle supply chain constraints
• GameStop CEO Ryan Cohen reveals he owns 10% shares in the retailer
• Cohen said the retailer is struggling to reverse market share losses and tackle supply chain constraints
Bed Bath & Beyond (NYSE: BBBY) shares soared more than 100% on Monday in premarket trading after activist investor Ryan Cohen revealed his 10% shares in the retailer.
Cohen, who is the current CEO of GameStop and the co-founder of online pet retailer Chewy, said the retailer is struggling to reverse market share losses and tackle supply chain constraints.
“We believe Bed Bath needs to narrow its focus to fortify operations and maintain the right inventory mix to meet demand, while simultaneously exploring strategic alternatives that include separating Buybuy Baby, and a full sale of the company,” wrote Cohen in a letter to Bed Bath’s board.
Bed Bath said it had no prior contact with Cohen’s investment company RC Ventures.
“We will carefully review their letter and hope to engage constructively around the ideas they have put forth,” Bed Bath said in a statement.
“2021 marked the first year of execution of our bold, multi-year transformation plan, which we believe will create significant long-term shareholder value.”
Bed Bath was earlier criticized in 2019 by activist investors for its e-commerce performance compared to giants including Amazon after which four new members were added to its board.
Former Target executive, Mark Tritton was appointed CEO of Bed Bath after the criticism and the investors hoped he would bring right changes in the company given his success in the former company.
Cohen said in him letter, that due to his responsibilities in GameStop, he is unable to become a director of Bed Bath, but still holds the right to holding the board accountable.
Cohen joined GameStop’s board in January 2021 and took over as CEO later in the year after surge in its shares due to Reddit groups. He co-founded Chewy in 2011.
Picture Credits: Getty Images
