Monday , August 15 2022

Bed Bath & Beyond are attacked by activists



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A trio of active investors believe the Bed Bath & Beyond Inc. business model. We have fallen sleepy and intend to call a wake up to the big box retailer.

Three operator funds – Legion Partners Asset Management LLC, Macellum GP LLC Consultants and Ancora Advisors LLC – together manage a share of about 5% in Bed Bath & Beyond and are preparing to launch a proxy battle to replace its board. whole person, according to people who are familiar with the issue.

The group argues that Bed Bath & Beyond has failed to adapt as consumers shop increasingly online or expect unique experiences in brick-and-mortar stores, the people said. The retailer has allowed their costs to increase, they said, resulting in a shrinking profit over recent years.

The group of investors want the retailer, known for its big stores full of bedding, towels, kitchen trinkets and other household goods, to curate its goods better and consider selling noncore brands. such as Buy Buy Baby and Cost Plus World Market to focus on. the people said.

He also wants to replace the Chief Executive Steven Temares, who has led the company since 2003, and better aligns compensation with performance.

The group's 16 directors include Jeffrey A. Kirwan, former executive officer of Gap Inc., former CEO of Pier 1 Imports Inc., Alexander W. Smith and founder of Macellum, Jonathan Duskin, the people.

Union Bath, Bath & Beyond Bed, based on N.J. respond immediately to request for comment.

Bath & Beyond Bed shares have fallen by 35% over the last year, compared to an increase of 8.1% S&P 500, and its sales of one shop have fallen in each of the last seven quarters, according to FactSet.

The company has recently said that it prioritises profitability over sales growth and that some of its actions, such as removing less profitable items and changing its shipping policy for free, could damage sales in the near term. but should improve profitability over time. The company has been updating its online shopping platform and is experiencing changes in stores in several dozen Bath & Beyond Bath stores, such as adding more seasonal items, reducing the inventory and updating exhibitions.

Mr Temares said on the company's latest earnings call in January that the early results of some of those stores were promising, and the company's shares rose more than 16% the following day after he said it was quicker than The expectation is to reduce operating profit. The company has its slates to report on its fourth quarter financial quarter April 10.

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Bed Bath & Beyond was founded by Leonard Feinstein and Warren Eisenberg in 1971. Both men are long-term board members and co-chairs and manage about 2.7% of the company's shares, according to FactSet.

Legion, Macellum and Ancora all tend to be upset in small companies. California-based Legion was sown by the California State Retirement System and previously encouraged Perry Ellis International Inc.. to sell himself. New York based Macellum focuses on retail investments and has previously settled with Children 's Place Inc., while Ancora, which is based in Ohio, has won board seat in Potbelly sandwich chain.

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