Bed Bath & Beyond Announces Leadership Changes

The newly announced leadership change at Bed Bath & Beyond was confirmed on Monday when CEO Jonathan Johnson stepped down from his role. This decision came just days after activist hedge fund JAT Capital, which owns a 9.6% stake in the company, publicly called for Johnson’s removal. In a letter dated Thursday, JAT Capital criticized Johnson for the company’s underperformance, citing the company’s financial results compared to its peers, poor communication with investors and the sell-side community, and actions that appeared self-serving.

JAT Capital recommended Marcus Lemonis, CEO of Camping World and a well-known TV personality, to take over the management of the company. Lemonis had recently joined the board of Overstock and expressed support for its transition to Beyond Inc., which took effect on the same day as this announcement.

Jonathan Johnson had been serving as Overstock’s CEO since 2019 and had led the company through its acquisition of Bed Bath & Beyond earlier in the year. Following his departure, David Nielsen, Beyond’s president and a former executive at Payless ShoeSource, has assumed the role of interim CEO while the board initiates a search for a permanent replacement.

Jonathan Johnson had a tenure of more than 20 years with the company and assumed the role of chief executive following the disclosure by the company’s founder and former CEO, Patrick Byrne, of his relationship with a Russian spy.

Allison Abraham, chair of Beyond’s board, explained the leadership transition by stating, “Following the recent acquisition of the Bed Bath & Beyond brand and our corporate renaming as Beyond, Inc., the Board and Jonathan determined that this is the ideal time for a transition in leadership to guide the company forward.”

Bed Bath & Beyond characterized Johnson’s departure as a “mutual agreement” between him and the board to facilitate a smooth transition to new leadership. However, the timing of this change was abrupt, as just two weeks ago, the company had informed reporters that Johnson would be in New York on the day when the corporate name change was taking effect and would be available for meetings in the afternoon.

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