Investors filled their carts with Bed Bath & Beyond stock Tuesday after a hedge fund triumvirate called for a complete overhaul of the retailer’s board and the ousting of its chief executive.
Shares were up as much as 27 percent early Tuesday to $17.64 a share after the hedgie trio announced their own slate of 16 potential candidates to replace Bed Bath & Beyond’s 12-person board, claiming the current board is “entrenched” and displays a “lack of retail expertise.”
“The time is now to instill best-in-class corporate governance and hold management and directors accountable for the horrendous performance that has resulted in $8 billion of value destruction over the over the last 15 years at Bed Bath & Beyond,” Chris Kiper, co-founder and managing principal of Legion Partners said in a statement.
Legion Partners is joined by Macellum Advisors and Ancora Advisors to hold a roughly 5 percent stake in Bed Bath & Beyond.
The hedgies say Bed Bath & Beyond “lost touch with modern retail” and that the stores rely too much on promotions to draw shoppers into their stores only to be met with a “dizzying array of too similar items.”
Reps from Bed Bath and Beyond did not immediately respond to requests to comment.
Credit: Source link