A group of activist investors is looking to replace Bed Bath & Beyond’s board of directors and its CEO Steve Temares, the Wall St. Journal reported on Tuesday.
The investment groups— Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC— as a trio own about a 5% stake in the home specialty retailer.
According to the report, the group of investors feels Bed Bath & Beyond has failed to adapt to changes in the retail environment that includes growth in e-commerce and offering shoppers unique in-store experiences.
In addition to overhauling the board and changing top management, the group also feels the retailer needs to improve its merchandise selection and should consider selling brands such as Buy Buy Baby and Cost Plus World Market.
During its most recent quarterly financial report, Bed Bath & Beyond reported that third quarter comparable store sales declined 1.8%, but its customer-facing digital channels had comparable sales gains. Net sales were up 2.6% from the year-previous quarter to $3 billion while operating profit declined to $49.5 million from $108.4 million.
In a statement to HomeWorldBusiness.com, Bed Bath officials said, “At Bed Bath & Beyond we are open to the views of our shareholders and value constructive input focused on enhancing value. We are making significant progress on our transformation to continue to strengthen our position as the expert for the home and heartfelt life events. Our Board of Directors and management team remain committed to creating value for all shareholders by transforming our company to best position Bed Bath & Beyond for long-term success, and will continue to take actions to achieve these objectives.”
Editor’s note: The story has been updated to include a statement from Bed Bath & Beyond.