Investment firm JAT Capital has recently sent a blistering letter to the board of the newly rebranded Bed Bath & Beyond, accusing them of engaging in poor behavior and refusing to answer shareholders’ questions. This letter comes after a series of misdeeds perpetrated by the board, including canceling investor conferences and twisting the facts about former CEO Jonathan Johnson’s departure. JAT, which owns a 9.6% stake in the company, expressed its frustration with the board’s actions, stating that they have never seen such poor behavior in their career.
Before its rebranding, Bed Bath & Beyond was known as Overstock.com and was facing struggles with sluggish sales and a shrinking market cap. However, after the rebranding, the company’s first-quarter results were mixed, with significant declines in sales and profits. Bed Bath & Beyond has yet to comment on the accusations made by JAT Capital.
JAT Capital had previously called for the firing of former CEO Jonathan Johnson, and shortly after, the company announced his departure. In its scathing letter, JAT questioned the removal of Johnson’s board seat and claimed it was an attempt to weaken shareholders’ ability to have a say in the company’s affairs. The investment firm accused the board of being disingenuous about Johnson’s departure, stating that he had been fired rather than stepping down voluntarily. JAT criticized the board for crafting a press release that twisted the facts and made disingenuous characterizations of the situation, further fueling the perception that the board is engaged in self-preservation and inside dealing.
JAT Capital has called for Marcus Lemonis, the CEO of Camping World and TV personality from CNBC’s “The Profit,” to take over the management of Bed Bath & Beyond. Lemonis recently joined the board of the company and has shown support for its transition to Beyond Inc. JAT renewed its call for Lemonis to step in and accused the board of being suspicious of him, pushing him to the sidelines and ignoring his expertise. The investment firm revealed that Allison Abraham, the chair of the board, expressed concerns about Lemonis having a secret nefarious plot. However, when pressed for details about this plot, she admitted to not knowing what it could be.
JAT Capital has called on Bed Bath & Beyond’s board to answer their questions and demanded more transparency from the company. The investment firm believes that shareholders, vendors, and sell-side analysts should join forces to demand an explanation from the board about their actions. JAT argues that the board’s recent decisions have been detrimental to the company and its shareholders. It is essential for the board to provide clarity and address the concerns raised by JAT and other stakeholders.
The battle between JAT Capital and Bed Bath & Beyond highlights the lack of transparency and questionable behavior exhibited by the company’s board. The accusations made by JAT Capital regarding the firing of the former CEO and the sidelining of Marcus Lemonis raise concerns about the board’s decision-making process. It is crucial that the board addresses these allegations and provides the transparency and accountability that shareholders and stakeholders deserve. The future of Bed Bath & Beyond hinges on the board’s ability to navigate this conflict and regain the trust of its investors.