What's Next For Bed Bath & Beyond?

Zinger Key Points
  • The home goods retailer announced it would close about 150 of its more than 700 stores and lay off about 20% of its employees.
  • A search for a successor to the company's CFO could take months, a new report says.

Bed Bath & Beyond Inc BBBY has a number of executive vacancies as the retailer faces a corporate restructuring. 

The company's CEO and chief merchandising officer left the retailer June 29, and CFO Gustavo Arnal died Friday in New York City. 

John Barresi, who worked under Arnal as the chief accounting officer, had resigned earlier in May.

A search for a permanent successor to Arnal will likely take three months or longer and be complicated by the challenges the company is facing, according to The Wall Street Journal.

CEO Mark Tritton and Chief Merchandising Officer Joe Hartsig left the home goods retailer June 29 after it announced declining sales and significant losses.

Bed Bath's Restructuring Plan: The home goods retailer announced Wednesday that it would close about 150 of its more than 700 stores and lay off about 20% of its employees as part of a restructuring deal that would give the company around $500 million in cash.

The business said that two other top executives — its chief operating officer and its chief stores officer — would be leaving as part of the restructuring deal.

The Context: After revealing an 11.8% position in Bed Bath, former activist investor Ryan Cohen reached an agreement with the company in March that saw his company, RC Ventures, designate three individuals to the Bed Bath board of directors.

Cohen recently sold his stake, which sparked a class-action lawsuit. His three appointees, Marjorie Bowen, Shelly Lombard and Ben Rosenzweig, continue to serve on the board of the organization, according to the company website.
Read more: Was Bed Bath & Beyond A 'Pump And Dump'? Ryan Cohen, Deceased CFO Named In Shareholder Lawsuit

Bed Bath is being led on an interim basis by Sue Gove, a board member who has 30 years of experience in the retail sector.

Gove elevated two executives into newly formed positions of brand presidents to lead the company's Bed Bath and buybuy Baby brands.

Photo via Shutterstock. 

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