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This morning, Ryan Cohen, the chairman of GameStop, revealed that his investment firm RC Ventures had acquired a majority stake in the furniture retailer Bed Bath & Beyond, representing approximately 10% of the company’s shares. Following this news, Bed Bath & Beyond’s stock surged by 40% during early trading hours.
Alongside the purchase announcement, Cohen addressed a letter to Bed Bath & Beyond’s executive board, criticizing their high salaries amidst the company’s period of financial challenges. He also offered suggestions to enhance the retailer’s performance and resolve issues such as inventory shortages caused by ongoing supply chain disruptions.
“We believe that Bed Bath & Beyond should focus on strengthening its operations, optimizing its inventory management to meet customer demand, and simultaneously explore strategic options like separating Buybuy Baby or selling the entire company,” said Cohen.
Bed Bath & Beyond Stock Surges After GameStop Chair Ryan Cohen Reveals $120 Million Investment https://t.co/IpWdr7y5o8 pic.twitter.com/eImm1DsWMp
— Forbes (@Forbes) March 7, 2022
In response to Cohen’s letter, Bed Bath & Beyond’s executive board acknowledged receipt of the suggestions and stated that this was the first direct communication they had received from him or RC Ventures.
“We will carefully assess their recommendations and look forward to engaging in a constructive dialogue regarding their proposals,” Bed Bath & Beyond stated. “The year 2021 marked the initial phase of our ambitious, multi-year transformation plan, which we anticipate will drive substantial long-term value for our shareholders.”
