Ryan Cohen, co-founder of Chewy and president of GameStop.
Courtesy of Ryan Cohen | Photography by George Kamper
Outdoor shower bed up more than 70% in pre-market trading on Monday after GameStop Chairman Ryan Cohen revealed he has a close to 10% stake in the retailer, through his investment firm RC Ventures.
Cohen, who also co-founded the online pet retailer Tough, wrote in a letter to Bed Bath’s board that he believes the retailer is struggling to reverse market share loss and navigate supply chain woes. He also criticized top executives for collecting compensation during periods of underperformance.
“We believe Bed Bath needs to narrow its focus to consolidate operations and maintain the right inventory to meet demand, while exploring strategic alternatives including decoupling,” said Cohen. Buybuy Baby and sell the entire company.”
In response to a letter that Bed Bath said it received on Sunday night, the big box retailer said it had no prior contact with RC Ventures.
“We will carefully review their letter and hope to engage constructively around the ideas they have come up with,” Bed Bath said in a statement. “The year 2021 marks the first year of our bold multi-year transformation plan, which we believe will create significant long-term value for shareholders.”
Shares of Bed Bath have fallen nearly 45% in the past 12 months.
This story is evolving. Please check back for updates.
