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A trio of activist investors are looking to replace Bed Bath & amp; The managing director of Beyond and the entire board of directors. (Photographer: Christopher Dilts / Bloomberg)
© 2017 Bloomberg Finance LP
Activist investors look to & nbsp; make things happen & nbsp; within the home product line Bed Bath & amp; Beyond, starting with the replacement of its long-time general manager and the entire 12-member board of directors, which is led by the founders of the company.
Three of the company's investors – Legion Partners Holdings, Macellum Advisors and Ancora Advisors – have regrouped and are currently using their 5% cumulative holdings to launch a proxy fight. The trio criticized the big-box retailer for failing to compete in a changing retail landscape. They blamed a complacent management team and committee for stagnating sales and declining retailer profits, according to a press release & nbsp;regulatory filing submitted to the Securities & amp; Exchange Commission on Tuesday.
Bed Bath & amp; Beyond 27% Tuesday. Stocks have become popular among short sellers and equities have lost 34% of their value over the last twelve months.
"Now is the time to establish a strong corporate governance and hold executives and administrators accountable for the appalling performance that has resulted in the destruction of $ 8 billion in value over the past 15 years at Bed Bath. & amp; Beyond, "said Chris Kiper, co-founder and CEO of Legion Partners.
The & nbsp; activists & nbsp; call for a turnaround in the company's leadership, starting with the replacement & nbsp; from Chief Executive Officer Steven Temares, who & nbsp; joined the company at & nbsp;1992 & nbsp; and & nbsp; occupies the first position since& nbsp; 2003. They also want to see Bed Bath & amp; Beyond the founders, Warren Eisenberg and Leonard Feinstein, who are over 80 and head the board, are retiring. Since the pair & nbsp; started & nbsp; the company in 1971, they "lost contact with modern retail," the activists alleged.& nbsp; In turn, they& nbsp; named & nbsp; 16 new candidates for the board.
Like many retailers, Bed Bath & amp; Beyond struggled to manage a sprawling brick and mortar footprint of more than 1,500 stores, while competing in an increasingly digital world.
"The arguments that caused investors' dislike of Bed Bath & Beyond are real and centered on the tired nature of its nearly 1,000 Bed Bath & North America; Beyond Stores," wrote in a note from Bobby Griffin, an badyst at Raymond James, who added that many of the stores his team has visited in recent months are "cluttered" and "dirty."
Its profits have eroded & nbsp; several years in a row, while revenues have stagnated. In 2018, net income fell to $ 425 million from $ 685 million a year earlier. Revenues increased slightly by 1% to $ 12.3 billion during this period.
A spokesman for the company said in a written statement that "at Bed Bath & amp; Beyond that, we are open to the views of our shareholders and value constructive contributions focused on improving value. "
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A trio of activist investors are looking to replace the general manager of Bed Bath & Beyond and its entire board of directors. (Photographer: Christopher Dilts / Bloomberg)
© 2017 Bloomberg Finance LP
Activist investors are looking to get things done at Bed Bath & Beyond, a chain of household goods stores, beginning with the replacement of its longtime general manager and the entire board of directors. 12-member administration, which is led by the founders of the company.
Three of the company's investors – Legion Partners Holdings, Macellum Advisors and Ancora Advisors – have regrouped and are currently using their 5% cumulative holdings to launch a proxy fight. The trio criticized the big-box retailer for failing to compete in a changing retail landscape. They blamed a complacent management team and board for stagnating sales and declining retailer profits, according to a regulatory document submitted to the Securities & Exchange Commission on Tuesday.
Shares of Bed Bath & Beyond climbed 27% on Tuesday. The stock has become popular among short sellers and stocks have lost 34% of their value over the last twelve months.
"It's time to introduce the best corporate governance and hold executives and administrators accountable for the appalling performance that has resulted in $ 8 billion destruction over the past 15 years at Bed Bath & Beyond. said Chris Kiper, co-founder and senior director of the Legion's partners.
Activists call for a turnaround in the company's management, starting with the replacement of CEO Steven Temares, who joined the company in 1992 and occupies the first position since 2003. They also want the 80-year-old founders of Bed Bath & Beyond, Warren Eisenberg and Leonard Feinstein, who head the board, to retire. Since their inception in 1971, the two men have "lost touch with modern retailing," activists said. In turn, they appointed 16 new candidates to the board.
Like many retailers, Bed Bath & Beyond struggles to manage a sprawling brick and mortar footprint of more than 1,500 stores, while competing in an increasingly digital world.
"The arguments that provoked the dislike of investors with regard to Bed Bath & Beyond are real and centered on the tired nature of its nearly 1,000 North American Bed Bath & Beyond stores," wrote in a message from Raymond James badyst Bobby Griffin The stores his team has visited in recent months are "cluttered" and "dirty".
Its profits have been eroding for several years, while its revenues have stagnated. In 2018, net income fell to $ 425 million, down from $ 685 million the year before. Revenues increased slightly by 1% to $ 12.3 billion during this period.
A company spokesperson said in a written statement that "at Bed Bath & Beyond, we are open to the views of our shareholders and value constructive contributions focused on enhancing value." . "
