Bed Bath & Beyond Board of Directors Confirms Receipt of Ryan Cohen’s Investment Arm Letter and Hopes to “Engage Constructively” with RC Ventures

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Bed Bath & Beyond Inc. BBBY,
-3.40%
confirmed on Monday that it had received a letter from RC Ventures, the investment arm of Ryan Cohen, the billionaire co-founder of online pet products retailer Chewy Inc. CHWY,
-8.33%,
as The Wall Street Journal reported earlier. “Bed Bath & Beyond’s Board of Directors and management team maintain a constant dialogue with our shareholders and, although we have not had any prior contact with RC Ventures, we will carefully review their letter and hope to engage in constructively around the ideas they have put forward,” the company said in a statement. He added that after a year of his multi-year transformation plan, he is confident that he will create “significant long-term shareholder value”. In the letter sent Sunday evening, Cohen, whose company owns a 9.8% stake in Bed Bath & Beyond, making it one of its top five shareholders, said the board was unable to failed to stem sustained market share losses, noting that core sales fell 14% from a year ago last quarter. The investor is urging the company to narrow the direction of its turnaround and explore a spinoff from the Buybuy Baby chain or a sale of the entire company. Shares of Bed Bath & Beyond soared 46% before the news market.

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