Awkward... Shares of Bed Bath & Beyond surged 22% for their best day in a decade. But that's all because activist investors (funds who own 5% of the chain) want to replace the CEO and 12 board members. All of them. Fresh start. The stock's down 80% since 2014, so they're staging a corporate intervention. And they got personal (our favorite quotes):
- "The company has lost touch with modern retail"
- "A dizzying array of too-similar items"
Not enough "Bed" and "Bath"... Too much "Beyond." The activist investors simply think the destination for newly cohabitating couples has lost its focus. So they want it to make 2 moves since the competition is cheaper (Homegoods) and more convenient (Amazon):
- Sell off its rando brands (@Christmas Tree Shops, @Buy Buy Baby).
- Slim down its stores since you're probably still lost in one.
Time to "pull an Olive Garden"... Activist investors came in and replaced the board of the pasta chain's parent in 2014. The old leadership didn't add salt to the pasta water. The new leadership does. And shares are up 150% since then. Now activist investors want the same turnaround-style renovation at Bed Bath & Beyond.