Pet supply

Bed Bath & Beyond Stock surges as GameStop’s Cohen gets board seats

Updated at 8:49 a.m. EST

Bed, bath and beyond (BBBY) – Get the report from Bed Bath & Beyond Inc. Shares jumped on Friday after the homewares retailer reached a deal with activist investor Ryan Cohen to add new board members and explore the sale of its buybuy Baby division.

RC Ventures LLC, an investment group controlled by GameStop (EMG) – Get the Class A report from GameStop Corp. chairman, has pushed Bed, Bath & Beyond to consider several strategic alternatives, including a complete sale of the business, since revealing a nearly 10% stake in the group earlier this month.

Cohen, the founder of online pet supplies group Chewy.com (CHWY) – Get the Class A report from Chewy, Inc.also pushed for the sale of the group’s buybuyBaby division, which posted solid comp sales growth and a gross margin of 35.9% in the three months ending December.

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Under terms of the agreement made public on Friday, Bed Bath & Beyond will add three new members to its temporarily expanded board – Marjorie Bowen, Shelly Lombard and Ben Rosenzweig – and form a four-member strategy committee, including the current board member. Sue Gove, for “exploring alternatives to unlock greater value from the company’s buybuy BABY banner”.

“By renewing the board of directors with shareholder nominees who have a keen sense of capital markets and transactional experience, the company is well positioned to consider alternatives for buybuy BABY,” Cohen said. “I appreciate that management and the board have been willing to quickly embrace our ideas and I look forward to supporting them in the coming year.”

Shares of Bed, Bath & Beyond rose 6.6% in premarket trading on Friday to point to an opening price of $23.55 each.

“Our BABY buybuy business is a tremendous asset, and we are committed to unlocking its full value,” said CEO Mark Tritton, who called the division an “important cornerstone” of the group’s turnaround plans following its quarterly results. of December. Bed, Bath & Beyond said at the time hopes to increase sales of BABY to more than $1.5 billion over the next three years, thanks in part to the November 2021 marketing deal with Kroger Co. (KR) – Get the Kroger Co. report..

“As we move forward, our goals will continue to focus on creating value for our shareholders, improving experiences for our customers, implementing transformation across our business, and creating new exciting opportunities for our dedicated employees across all of our banners,” he said. added.