Ryan Cohen, Chewy co-founder and chairman of GameStop.
Courtesy of Ryan Cohen | Photography by George Kamper
Bed Bath & Beyond surged more than 70% in premarket trading Monday after GameStop Chairman Ryan Cohen revealed he had a nearly 10% stake in the retailer, through his investment company RC Ventures.
Cohen, who also co-founded the online pet retailer Chewy, wrote in a letter to Bed Bath’s board that he believes the retailer is struggling to reverse market share losses and to navigate supply chain woes. He also criticized top executives for reaping compensation during periods of underperformance.
“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.
In response to the letter, which Bed Bath said it received on Sunday evening, the big-box retailer said it has had no prior contact with 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.”
Bed Bath shares have dropped nearly 45% in the last 12 months.
This story is developing. Please check back for updates.