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Signage is posted outside a Bed Bath & Beyond Inc. store in Los Angeles, California, USA on Monday, September 19, 2016.
Patrick T. Fallon | Bloomberg | Getty Images
Bed Bath & Beyond announced Monday that CEO Steven Temares was retiring, "effective immediately", as activist investors demanded changes at the retailer.
Mary Winston, currently a member of the Board of Directors, will act as Acting CEO until a replacement is found. Temares also resigns from Bed Bath & Beyond's board of directors, the company said.
"The board determined that the time had come to identify the next generation of executives," said Patrick Gaston, independent chairman of the retailer's board of directors.
Bed Bath & Beyond, faced with pressure from activist investors, Legion Partners Asset Management, Macellum Advisors and Ancora Advisors, recently appointed five new independent members to its board of directors. Activists had lobbied to replace the entire board and oust Temares as CEO.
Temares has been CEO since 2003, but has held various other positions within the company for almost three decades.
Bed Bath & Beyond is struggling to increase sales as more and more customers connect online on platforms like Amazon. It laid off nearly 150 people in March, which also impacted on its Christmas Tree Shops, a discount home decoration chain acquired in 2003.
The company also announced Monday that Andrea Weiss, recently appointed to the board, will lead the retailer's strategy and business transformation review committee, "which will be responsible for ensuring that every aspect of business transformation in the course of the company are taken into account ".
Shares of Bed Bath & Beyond jumped 2.8% in pre-sale deals after Monday's announcement. The stock has gained nearly 40% this year.
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