Bed Bath & Beyond (NASDAQ: BBBY) has reportedly struck a deal with activist investor Ryan Cohen, giving its early trading wings.
The home goods retailer said in a news release that three people chosen by Cohen’s firm, RC Ventures, will immediately join Bed Bath’s board as independent directors. They include Marjorie Bowen, Shelly Lombard, and Ben Rosenzweig.
The company said a four-person committee will look into alternatives for its Buybuy Baby chain and make recommendations to the board.
Bed Bath has been in the middle of a turnaround effort led by former Target (NYSE:TGT) executive Mark Tritton, who took the helm in 2019. That has included a overhaul of many aspects of the company, including a heavier emphasis on private label, store remodels and closures of underperforming locations.
Bed Bath’s stock performance has lagged, even as the pandemic fueled a hot real estate market and inspired Americans to invest in their homes. Shares are down about 23% over the past year. They closed Thursday at $22.10, bringing the company’s market value to $2.13 billion.
Earlier this month, Cohen, also the chairman of GameStop (NYSE:GME), revealed a nearly 10% stake in Bed Bath and his intentions to push the retailer to make sweeping changes. In a letter, he criticized Bed Bath’s leaders for racking up high pay while struggling to turn around the retailer’s performance.
BBY shares took on 84 cents, or 3.8%, to $22.94.