Bed Bath & Beyond Appoints Interim CEO Sue Gove Permanently
Bed bath and beyond
Bed bath and beyond said Wednesday that he had named interim CEO Sue Gove to the position permanently.
Shares of the company were down more than 4% in early trading Wednesday after falling about 10% during premarket hours. The stock is down about 64% so far this year. The company’s market capitalization is approximately $406 million.
Gove, a member of the company’s board of directors and a longtime retail consultant, takes on the role at a pivotal time for the housewares retailer. Bed Bath is trying to reverse declining sales, win back customers and strengthen supplier relationships. She’s also preparing for the holiday season, a key quarter that could determine whether she can stabilize her finances.
Gove was appointed interim CEO in June after the company’s board kicked out former chief executive Mark Tritton. She is the founder of a retail consultancy and advisory firm, Excelsior Advisors. Before becoming a consultant, she held several financial and strategic positions, including president and CEO of Golfsmith International Holdings and chief operating officer of Zale Corp., according to the biography on Bed Bath’s website.
Gove has already overseen major changes within the company. Late August, Bed Bath announced cost reductions and a new loan on a call with investors. At the time, it announced it would be closing 150 of its namesake stores and reducing its workforce by about 20% across its corporate workforce and supply chain. It secured more than $500 million in new financing, including a $375 million loan through Sixth Street Partners, a lender that provided financing to other retailers including JC Penney and Designer Brands. It also expanded its $1.13 billion asset-backed revolving credit facility.
Yet the company must also overcome another major struggle: its strained relations with its suppliers of products that line its shelves. He struggled to get popular brands and popular items during previous holiday seasons, like KitchenAid stand mixers and Dyson vacuum cleaners. Without these items this holiday season, Bed Bath might struggle to compete with rivals like Amazon, Target and walmart.
Bed Bath is hosting its first Supplier Summit on Wednesday, which the company says will strengthen those relationships.
The retailer has another vacancy to fill. She is looking for a new financial director after the suicide of Gustavo Arnal. Last month he called on its accounting manager, Laura Crossen, as Acting Chief Financial Officer.
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