Activist investors are hoping to replace Bed Bath & Beyond’s entire 12-person board, including Chief Executive Steven Temares, who has been at the helm of Bed Bath & Beyond since 2003.
The investors, Legion Partners Asset Management, Macellum Advisors GP and Ancora Advisors, control 5% of Bed Bath & Beyond. The trio feels that the store has fallen behind its competition, and allowed costs to rise in recent years, according to The Wall Street Journal.
While they have yet to be successful in their quest, news of their desire to replace the board caused shares of Bed Bath & Beyond to rise 22% Tuesday.
“Members of our Board of Directors and senior management team have met with and held several discussions with Legion and Macellum over the past few weeks. Ancora has not previously reached out to or engaged,” Bed Bath & Beyond said in a prepared statement. “We asked on several occasions for their suggestions and ideas for improving the Company’s business but they did not provide any.”
The company said its statement that it also invited the activist investors to participate in its “Board refreshment program” it has been undertaking in recent years, stating the company is in the process of accelerating with investor input.
“Instead, they chose to publicly attack the Company and provide their intent to nominate directors to take over the full Board,” Bath & Beyond’s statement continued. “Unfortunately, while our directors and management were seeking to engage in good faith, it appears that the Legion and Macellum representatives were merely seeking information to support their attack.”
In addition to replacing the board, the investors want the company to consider selling off some of its noncore concepts including buybuy Baby, Christmas Tree Shops and Cost Plus
