CEO Mark Tritton has been staging a turnaround at Bed Bath & Beyond. Shares of the company have risen 11% so far this year, as of Friday’s close.
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Bed Bath & Beyond
stock doubled in premarket trading Monday after
Chairman Ryan Cohen took a big stake in the home-goods retailer and urged it to explore strategic alternatives, including a full sale of the company.
Cohen, who co-founded online pet products retailer
(ticker: CHWY) owns a 9.8% stake in Bed Bath & Beyond through his investment firm, RC Ventures LLC, according to a letter sent to its board Sunday. That makes him a top-five shareholder in the New Jersey-based chain, which is valued at around $1.6 billion.
Shares in Bed Bath & Beyond (BBBY) leaped more than 110% to $34 Monday, which, if the gains hold, would be its best day on record. The stock has dropped 47.76% in the past 12 months as of Friday’s close.
Bed Bath & Beyond said that it will “carefully review” the letter from RC Ventures and hopes to “engage constructively around the ideas they have put forth.”
“2021 marked the first year of execution of our bold, multi-year transformation plan, which we believe will create significant long-term shareholder value,” the company said in a statement on Monday.
Under chief executive Mark Tritton, Bed Bath & Beyond has been staging a turnaround, introducing a number of private-label brands in the past few months, but it has come under pressure from rising inflation and…