Bed Bath & Beyond refreshes board, co-founders step down
FILE PHOTO: The sign outside the Bed Bath & Beyond store is seen in Westminster, Colorado, June 22, 2016. REUTERS/Rick Wilking
(Reuters) – Bed Bath & Beyond Inc said it appointed five new independent members to its board, replacing some directors including co-founders Warren Eisenberg and Leonard Feinstein, after facing pressure from a trio of activist investors to refresh its board. Shares of the New Jersey-based company rose about 2 percent before the bell.
Last month, activist investors Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC urged Bed Bath & Beyond to replace its entire board and oust Chief Executive Steven Temares.
The company said the activist group was invited to participate in the transformation of the board, but it declined.
Following the changes effective May 1, the board will comprise 10 directors, nine of whom are independent and six women, the company said.
Bed Bath & Beyond has struggled to keep pace with changing consumer tastes and shopping habits over the years, with sales growth spiraling down to just 1.1 percent last year compared with 22 percent in 2003, when Temares took over as CEO.
“The changes announced today reflect significant shareholder input and underscore our commitment to ensuring we have best-in-class governance,” said Patrick Gaston, who was named an independent chairman.
Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli