This morning, GameStop chairman Ryan Cohen announced that, through his personal investment company RC Ventures, he had purchased a controlling stake in furniture retailer Bed Bath & Beyond, roughly equivalent to about 10% of their shares. Following this announcement, Bed Bath’s stock value jumped up by 40% in early morning trading.
In addition to the announcement of his purchase, Cohen sent a letter to Bed Bath’s executive board, decrying its members for taking excessive paychecks when their company is in the midst of a struggling period. He also provided some suggestions on how to improve the retailer’s standing and deal with some problems that have been plaguing it, such as complications with securing inventory due to the ongoing supply chain problems.
“We believe Bed Bath needs to narrow its focus to fortify operations and maintain the right inventory mix to meet demand, while simultaneously exploring strategic alternatives that include separating Buybuy Baby, and a full sale of the company,” said Cohen.
Bed Bath & Beyond Stock Skyrockets After Billionaire GameStop Chair Cohen Discloses $120 Million Investment https://t.co/IpWdr7y5o8 pic.twitter.com/eImm1DsWMp
— Forbes (@Forbes) March 7, 2022
In response to Cohen’s letter, Bed Bath’s executive board said they would take his suggestions under advisement, though they added that this was the first time they had any interaction with him or RC Ventures.
“We will carefully review their letter and hope to engage constructively around the ideas they have put forth,” Bed Bath said in a statement. “2021 marked the first year of execution of our bold, multi-year transformation plan, which we believe will create significant long-term shareholder value.”