The Wall Street Journal: Bed Bath & Beyond’s CEO, board targeted by activist investors

A trio of activist investors thinks Bed Bath & Beyond Inc.’s business model has gotten sleepy and plans to give the big-box retailer a wake-up call.

Three activist funds — Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC — together control a roughly 5% stake in Bed Bath & Beyond BBBY, +1.24%   and are preparing to launch a proxy fight to replace its entire 12-person board, according to people familiar with the matter.

The group contends Bed Bath & Beyond has failed to adapt as consumers increasingly shop online or expect unique experiences in bricks-and-mortar stores, the people said. The retailer has allowed its costs to increase, they said, resulting in shrinking margins over the past several years.

The investor group wants the retailer, known for its large stores packed with bedding, towels, kitchen trinkets and other home goods, to better curate its merchandise and consider selling noncore brands such as Buy Buy Baby and Cost Plus World Market to focus on its core business, the people said. It also wants it to replace Chief Executive Steven Temares, who has led the company since 2003, they said, and better align compensation with performance.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Nintendo to launch two new Switch models.

Men ditch suits, and retailers struggle to adapt.

Filed in: Top News Tags: 

You might like:

How the $700 million Equifax settlement could leave you high and dry How the $700 million Equifax settlement could leave you high and dry
Economic Report: Existing-home sales dip 1.7%, housing market struggles despite cheaper mortgages Economic Report: Existing-home sales dip 1.7%, housing market struggles despite cheaper mortgages
Market Snapshot: Stocks mostly higher as earnings season ramps up; Coke shares prop up the Dow Market Snapshot: Stocks mostly higher as earnings season ramps up; Coke shares prop up the Dow
Futures Movers: Oil falls as Middle East news flow calms ahead of data expected to show a fall in U.S. crude supplies Futures Movers: Oil falls as Middle East news flow calms ahead of data expected to show a fall in U.S. crude supplies
Key Words: Two Louisiana officers fired over post suggesting Ocasio-Cortez should be shot Key Words: Two Louisiana officers fired over post suggesting Ocasio-Cortez should be shot
Coca-Cola earnings get a jolt from ready-to-drink Costa Coffee Coca-Cola earnings get a jolt from ready-to-drink Costa Coffee
Project Syndicate: Politics is making Fed policy incoherent Project Syndicate: Politics is making Fed policy incoherent
After the Equifax breach settlement, brace yourself for what could replace Social Security numbers After the Equifax breach settlement, brace yourself for what could replace Social Security numbers

Leave a Reply

Submit Comment
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.