Bed Bath & Beyond announced Monday in which CEO Steven Temares is actually stepping down, “effectively immediately,” as activist investors push for alterations at the retailer.
in which said Mary Winston, who was recently named to the board, will serve as interim CEO until a replacement is actually found. The company said Temares is actually also resigning via Bed Bath & Beyond’s board.
Winston has held various roles in retail, including serving as CFO at Family Dollar Stores. She also was CFO at Scholastic, in addition to she’s currently president at WinsCo Enterprises, a financial in addition to board governance consulting firm, in addition to being a board member at Acuity Brands, Domtar in addition to Dover.
Bed Bath & Beyond shares jumped more than 3% in premarket trading following the news however were last down more than 6%. The stock has gained nearly 35% This particular year, with many of those gains coming after a trio of activists revealed their stake from the company. Shares are still down about 10% over the past 12 months.
Big-box rivals like Target in addition to Walmart, meantime, have fared better within the past year: Walmart shares are up nearly 20% via a year ago, while Target shares have climbed a little more than 2%.
Bed Bath & Beyond, faced with pressure via activist investors Legion Partners Asset Management, Macellum Advisors in addition to Ancora Advisors, recently appointed a few brand-new independent members to its board, including Winston. The activists had been pushing to replace the entire board in addition to to oust Temares as CEO.
Temares has been CEO since 2003 however had held various additional roles at the company for nearly three decades. He has been criticized for not doing enough to get the retailer out of its sales slump.
“The board determined in which currently is actually the right time to identify the next generation of leadership,” said Patrick Gaston, independent chairman of the retailer’s board.
Bed Bath & Beyond, with more than 1,000 stores across the U.S. in addition to Puerto Rico, has been struggling to grow sales as more shoppers head online to platforms like Amazon. in which laid off nearly 150 people in March, which also impacted its Christmas Tree Shops business, a discount home decor chain in which acquired in 2003.
The company also said Monday in which Andrea Weiss, a recent appointment to the board, will head the retailer’s Business Transformation in addition to Strategy Review Committee, “which will be responsible for ensuring in which all aspects of the Company’s ongoing business transformation are addressed.” Weiss has held executive leadership roles at additional retailers including The Limited, Guess in addition to Ann Taylor Stores.
“As we continue to review our business initiatives, we will be focused on driving continued margin improvement, enhancing the in-store in addition to online experience, in addition to accelerating our transformation to the benefit of our shareholders, customers in addition to additional stakeholders,” Winston said in a statement.
Bed Bath & Beyond said in which’s formed an independent search committee to find a replacement CEO in addition to in which hired an executive search firm to help in in which process.
Telsey Advisory Group analyst Cristina Fernandez called the news a “positive development” for stockholders in addition to “a sign in which more meaningful change is actually underway.”
“We believe the CEO transition creates an opportunity for the board to choose a leader which has a vision for competing more effectively in today’s consumer environment in addition to experience with omnichannel retailing, developing private label brands, in addition to creating immersive store experiences,” Fernandez said in a research note.