The stock price of Bed Bath & Beyond (NASDAQ: BBBY) soared significantly after an activist group of investors said they want to replace the company’s entire Board of Directors.
BBBY shares traded as much as $18.09 per share, up by more than 22 percent on Tuesday.
In a statement, Legion Partners Holdings, Macellum Advisors and Ancora Advisors (activist group) said it is necessary to change the Board of Bed Bath & Beyond because of the magnitude of value destruction.
Activist group says Bed Bath & Beyond Board lacks retail expertise
The activist group noted that more than $8 billion in market value was destroyed under the leadership of the company’s CEO Steven Tamares during his 15-year tenure.
Since early 2015, BBBY shares lost more than 80 percent of its value, according to the activist group.
Additionally, the activist group stressed that the Board of Bed Bath & Beyond lacks retail expertise. The Board’s failure to execute the company’s strategy and adapt its business model to a changing retail environment resulted in stagnant sales and declining EBITDA margins.