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Bed Bath & Beyond Inc (NYSE: BBBY) said on Friday it would add three new directors from activist investor Ryan Cohen’s RC Ventures.
The announcement comes after Cohen had earlier said that the retailer was struggling to reverse market share losses and tackle supply chain constraints.
“We believe Bed Bath needs to narrow its focus to fortify operations and maintain the right inventory mix to meet demand, while simultaneously exploring strategic alternatives that include separating Buybuy Baby, and a full sale of the company,” Cohen had written in a letter to Bed Bath’s board.
Cohen’s RC Ventures owns roughly 9.8% stake in the company.
Also Read: Bed Bath & Beyond shares soar more than 100%
Bed Bath & Beyond also said it is exploring options for its buybuy Baby business including either separation of the chain or sale of the entire company.
The company said three RC Ventures’ executives—Marjorie Bowen, Shelly Lombard, and Ben Rosenzweig —would immediately join Bed Bath & Beyond’s board of directors.
Shares of the retailer closed 2.2% higher at $22.59 on Friday. The company shares gained about 55% this year.
Of the new directors, Bowen and Rosenzweig, would join a committee working towards exploring options to bring profit in the buybuy Baby business.
Picture Credits: Zuma Press