Bed Bath & Beyond activist investors pushing to replace board, CEO

Looking carts are stacked up at a Bed Tub & Beyond retail shop in Somerville, Massachusetts, U.S. June 17, 2016. REUTERS/Brian Snyder

(Reuters) – three activist potential buyers disclosed a put together 5 p.c stake in Bed Tub & Beyond Inc on Tuesday and sought to substitute the total board and the company’s prolonged-time main government officer, Steven Temares.

Shares of the business surged previously mentioned 28 p.c in early acquiring and promoting on Tuesday quickly immediately after The Wall Highway Journal extremely very first documented about the developments late on Monday.

The trader team, Legion Companions Asset Administration LLC, Macellum Advisors GP LLC and Ancora Advisors LLC, claimed it was also making an attempt to locate to get the business to analysis possibilities for all of its non-main designs.

“The board’s self-enriching mentality as evidenced by its as well a lot fork out offers and failure to maintain by itself and administration accountable, necessitate a alter in a bulk of the board at the yearly meeting,” the trio of potential buyers claimed in a assertion.

The trio introduced the nomination of 16 impartial candidates, jointly with preceding Hole Inc government Jeffrey Kirwan and preceding Pier one Imports Inc CEO Alexander Smith, to substitute the household furnishing retailer’s board.

The business in reaction claimed it was “open to the views” of its shareholders and valued constructive enter.

“Our board of directors and administration team maintain on becoming absolutely commited to building profit for all shareholders by transforming our business to best circumstance Bed Tub & Beyond for prolonged-time interval accomplishment, and will have on to get methods to execute these aims,” a business spokesperson instructed Reuters.

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The a couple of potential buyers also claimed that Temares, who took helm in 2003, has overseen “the destruction of significantly extra than $eight billion in industry value” previously mentioned his tenure.

Reporting by Aishwarya Venugopal in Bengaluru Maximizing by Maju Samuel

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