Bed Bath & Beyond

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Bed Bath & Beyond Inc.
FormerlyBed 'n Bath (1971–1987)
TypePublic
IndustryRetail
Founded1971; 51 years ago (1971)
Springfield, New Jersey, U.S.
Founders
  • Warren Eisenberg
  • Leonard Feinstein
Headquarters
Union, New Jersey
,
U.S.
Number of locations
953 (2022)
Areas served
  • United States
  • Mexico
  • Canada
  • Puerto Rico
Key people
Harriet Edelman (Chair)
Sue Gove (CEO)[1]
ProductsHome furnishings, domestics merchandise
RevenueDecrease US$7.87 billion (2022)
Decrease US$−408 million (2022)
Decrease US$−560 million (2022)
Total assetsDecrease US$5.13 billion (2022)
Total equityDecrease US$174 million (2022)
Number of employees
55,000 (2020)
SubsidiariesSee § Subsidiaries
Websitebedbathandbeyond.com
Footnotes / references
Financials as of February 26, 2022.[2]
Bed Bath & Beyond in Saugus, Massachusetts in October 2011. This location closed in February 2021 as part of a plan to close 43 stores.
Bed Bath & Beyond in Markham, Ontario in August 2018.

Bed Bath & Beyond Inc. is an American chain of domestic merchandise retail stores. The chain operates many stores in the United States, Canada, Mexico, and Puerto Rico.[3]

Bed Bath & Beyond was founded in 1971. It is counted among the Fortune 500 and the Forbes Global 2000.[4][5]

History[edit]

Warren Eisenberg and Leonard Feinstein worked in management positions at discount store chain Arlan's. As the company suffered financial difficulties, and the two believed that the market would shift toward specialty stores, they decided to leave and form their own company.[6] In 1971, they opened a store in Springfield, New Jersey, called Bed 'n Bath. By 1985, Eisenberg and Feinstein were operating 17 stores in the New York metropolitan area and California. Also in 1985, the first superstore was opened, as an attempt to remain competitive with Linens 'n Things, Pacific Linen, and Luxury Linens. In order to properly represent the size increase in its retail stores, the company changed its name to Bed Bath & Beyond in 1987. The company adopted integrated computer-based inventory management systems in 1993 to better compete with Linens ‘n Things, which had utilized computer inventory management since the late 1980s.[7]

By 1991, Bed Bath & Beyond had opened seven new superstores in New Jersey, California, Virginia, Illinois, Maryland, and Florida. By 2011, Bed Bath & Beyond had 1,142 stores.[8]

The company went public in June 1992, making its IPO on the NASDAQ stock exchange, where its stock continues to trade under ticker symbol BBBY.[9] Bed Bath & Beyond first reached $1 billion in annual sales in 1999.[7]

In March 2019, three activist investment firms—Legion Partners, Marcellum Advisors, and Ancora Advisors—announced their intent to remove current CEO Steven Temares and restructure Bed Bath & Beyond’s current board of directors.[10] The activist investors highlighted several instances of perceived nepotism, including the acquisition of Buy Buy Baby, which was founded by two of Bed Bath & Beyond co-founder Leonard Feinstein’s children, and the acquisition of Chef Central, which was created by co-founder Warren Eisenberg’s son, as examples of poor business practices at Bed Bath & Beyond.[11] This pressure led five independent directors to step down on April 22, 2019, and also resulted in the company restructuring its board to include only 10 directors instead of the previous 12 members.[12]

On April 13, 2019, there was a report that the chain would close 40 stores but open 15 new locations.[3]

On May 13, 2019, Bed Bath & Beyond announced that CEO Steven Temares would step down “effectively immediately” and would resign his seat on the board of directors. Mary Winston, who had been appointed to the company's board as a result of the activist investment firms’ efforts, replaced Temares as interim CEO.[13][14] On November 4, 2019, Mark Tritton, who was previously Target's chief merchandising officer, started as Bed Bath & Beyond's CEO.[15]

The company, which had for decades used coupon mailers and other promotional discounting tactics to attract consumers, announced in April 2019 that it would reduce its use of promotional coupons and tighten restrictions on their use. To combat declining profitability, Bed Bath & Beyond also announced it was creating private-label brands and opening “lab stores” that focused on home decor, food and drink, and health and beauty products.[16]

As of 2019, Bed Bath & Beyond operated approximately 1,530 stores in all 50 U.S. states, as well as in the District of Columbia, Puerto Rico, and Canada. In addition to more than 1,020 Bed Bath & Beyond stores, the company also operated approximately 280 Cost Plus World Markets, 100 Buybuy Baby stores, roughly 80 Christmas Tree Shops (and related brands), and more than 50 Harmon stores.[17]

Due to the COVID-19 pandemic, the company announced it would close more than 200 stores, about 21%, over two years.[18]

In January 2021, Bed Bath & Beyond announced that they would stop selling MyPillow, citing poor sales.[19] The announcement came in the wake of the January 6 United States Capitol attack and MyPillow CEO Mike Lindell's efforts to overturn the 2020 presidential election, and amidst similar announcements by Kohl's and Wayfair.[20]

In March 2022, former CEO of Chewy, Ryan Cohen, sent an open letter, as part of a Schedule 13D filing, to the Board of Directors calling for Buy Buy Baby to be sold or spun off at a favorable valuation.[21][22] Subsequently, Bed Bath & Beyond reached a deal to give Ryan Cohen three board seats in exchange for his cooperation and the creation of a committee to execute his proposed plan.[23]

On June 29, 2022, significant changes to executive leadership were announced by Bed Bath & Beyond Inc.. Mark Tritton left his role as President and Chief Executive Officer and as a member of the Board, and was replaced by Sue Gove.[24]

In July 2022, FCM BBBY Holdings, LLC, managed by Jake Freeman, also sent an open letter, as part of a Schedule 13G filing, asking the Board of Directors to consider their proposed plan to reduce Bed Bath & Beyond's debt and improve liquidity through a convertible bond issuance.[25]

In August 2022, the company announced the closure of 150 under performing stores[26] and the reduction of its corporate and supply chain staff by about 20%.[27]

On September 2, 2022, Bed Bath & Beyond chief financial officer Gustavo Arnal fell to his death from the 18th floor of his balcony at 56 Leonard Street (commonly known as the "Jenga building"). Arnal, who was one of the targets of a class action with regard to Bed Bath & Beyond's stock becoming a pump and dump scheme, is alleged by authorities to have committed suicide.[28][29][30]

On October 26, 2022, Bed Bath & Beyond Inc. announced Sue Gove was voted unanimously by the Board of Directors and would remain as the CEO.

Union headquarters[edit]

The company's headquarters are located along the 7.3-mile main line of the abandoned Rahway Valley Railroad, which some have advocated for converting to a pedestrian linear park and rail trail.[31][32][33][34][35][36][37][38]

Competition[edit]

Since the liquidation of Linens 'n Things in 2008, Bed Bath and Beyond has had several major retail competitors, including Walmart, Target, and JCPenney. Companies such as Crate & Barrel, IKEA, and the numerous Williams Sonoma companies like Pottery Barn and West Elm are competitors as well.[citation needed]

Subsidiaries[edit]

Acquisitions[edit]

  • Harmon Stores – acquired in March 2002, operates Face Values[39]
  • Buy Buy Baby – acquired in March 2007 for $67 million[40]
  • Cost Plus, Inc. – acquired in May 2012 for $495 million, operates Cost Plus World Market and World Market; sold in February 2021 to Front Burner LP[41][42]
  • Linen Holdings – acquired in June 2012 for $105 million[43]
  • Of a Kind – acquired in August 2015 for an undisclosed amount[44]
  • One Kings Lane – acquired in June 2016 for an undisclosed amount[45]

Other subsidiaries[edit]

New Zealand chain[edit]

There is a New Zealand chain with the name "Bed Bath & Beyond", which has no corporate connection with the American company.[48] This chain was founded in 1995 as Linen for Less and is New Zealand's largest Manchester specialist.[citation needed]

References[edit]

  1. ^ https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-appoints-sue-gove-president-chief-executive
  2. ^ "Bed Bath & Beyond Inc. Fiscal 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. April 21, 2022.
  3. ^ a b Wattles, Jackie (April 13, 2019). "Bed Bath & Beyond to close 40 stores". CNN. Retrieved June 27, 2019.
  4. ^ "Bed Bath & Beyond". Fortune. Retrieved February 28, 2018.
  5. ^ "Bed Bath & Beyond on the Forbes Global 2000 List". Forbes. Retrieved February 28, 2018.
  6. ^ "The rise and fall of Bed Bath & Beyond, one of America's most iconic big box retailers". Business Insider India. Times Internet Limited. Retrieved February 27, 2020.
  7. ^ a b "History of Bed Bath & Beyond Inc". FundingUniverse. Retrieved October 27, 2013.
  8. ^ Modrow, William M. (July 2003). "Business & Company Resource Center2003381Business & Company Resource Center. Farmington Hills, MI: The Gale Group Contact Gale for pricing URL: www.galegroup.com Last visited April 2003". Reference Reviews. 17 (7): 28–29. doi:10.1108/09504120310497915. ISSN 0950-4125.
  9. ^ History of Bed Bath & Beyond Inc. International Directory of Company Histories. Vol. 41. St. James Press. 2001. Retrieved February 25, 2019 – via Funding Universe.
  10. ^ Gomez, Amanda (March 26, 2019). "New brooms". Reuters BreakingViews. Retrieved May 1, 2019.
  11. ^ Verdon, Joan. "Bed Bath & Beyond's Family Ties Under Attack: Nepotism Or Good Deals?". Forbes. Retrieved May 1, 2019.
  12. ^ Chin, Kimberly (April 22, 2019). "Bed Bath & Beyond Overhauls Board Amid Activist Pressure". Wall Street Journal. ISSN 0099-9660. Retrieved May 1, 2019.
  13. ^ Thomas, Lauren (May 13, 2019). "Bed Bath & Beyond CEO Steven Temares steps down 'immediately' and resigns from board". CNBC. Retrieved May 14, 2019.
  14. ^ Maidenberg, Micah (May 13, 2019). "Bed Bath & Beyond Chief Executive Steps Down". Wall Street Journal. ISSN 0099-9660. Retrieved May 14, 2019.
  15. ^ Meyersohn, Nathaniel. "Bed Bath & Beyond's new CEO just laid off nearly his entire C-Suite". cnn.com. CNN. Retrieved December 17, 2019.
  16. ^ Bhattarai, Abha (April 26, 2019). "Your love of Bed Bath & Beyond coupons could be killing the retailer". The Washington Post. Retrieved May 1, 2019.
  17. ^ "Bed Bath & Beyond Inc (BBBY.O)". Reuters. Retrieved May 1, 2019.
  18. ^ Tyko, Kelly. "Bed Bath & Beyond announces plans to permanently close 200 stores over next two years". USA TODAY. Retrieved July 12, 2020.
  19. ^ Ren, Henry. "My Pillow Shunned by Retailers After CEO Touts Election Fraud". Bloomberg. Retrieved August 18, 2022.
  20. ^ Telford, Taylor (January 19, 2021). "MyPillow CEO says Bed Bath & Beyond, Kohl's, Wayfair are dropping his products". Washington Post. Retrieved August 18, 2022.
  21. ^ Stein, Sanford. "Activist Letter Sends Bed Bath & Beyond Stock Soaring". Forbes. Retrieved August 4, 2022.
  22. ^ www.sec.gov https://www.sec.gov/Archives/edgar/data/886158/000119380522000426/ex991to13d13351002_03072022.htm. Retrieved August 4, 2022. {{cite web}}: Missing or empty |title= (help)
  23. ^ Repko, Melissa. "Bed Bath & Beyond shares rise after retailer strikes deal with activist investor Ryan Cohen". CNBC. Retrieved August 4, 2022.
  24. ^ https://bedbathandbeyond.gcs-web.com/news-releases/news-release-details/bed-bath-beyond-inc-announces-executive-leadership-changes
  25. ^ Freeman, Jake (July 21, 2022). "FCM BBBY HOLDINGS, LLC Exhibit 1" (PDF). Securities and Exchange Commission.
  26. ^ Royce, Aaron (August 31, 2022). "Bed, Bath & Beyond Will Close 150 Stores: See Which Stores Have Already Shut Doors". Footware News.
  27. ^ Repko, Melissa (August 31, 2022). "Bed Bath & Beyond announces store closures, layoffs and new financing in push to fix struggling business". NBC News.
  28. ^ Mollman, Steve (September 4, 2022). "Bed Bath & Beyond CFO accused of "pump and dump" scheme before falling to his death from NYC skyscraper". Fortune. Retrieved September 5, 2022.
  29. ^ Singh, Kanishka (September 5, 2022). "Death of Bed Bath & Beyond CFO ruled a suicide". The Globe and Mail. Retrieved September 6, 2022.
  30. ^ Lombardo, Cara (September 7, 2022). "Inside Bed Bath & Beyond, Concerns Over Mounting Stress for CFO". The Wall Street Journal. Retrieved September 7, 2022.
  31. ^ "RVRR Main Line with landmarks in Union County". Google My Maps.
  32. ^ "Abandoned Rahway Valley Railroad -Proposed Rails to Trails Route "Flyover" 🚂🚶🏼‍♂️👩‍🦼🚴🏼‍♀️" – via www.youtube.com.
  33. ^ "The Summit Park Line: Latest News".
  34. ^ "Park Line Pedestrian Bridge Officially Installed In Summit". October 24, 2022.
  35. ^ "NJDOT Clearing Out Abandoned Railway Property in Roselle Park; Union County to Apply For a Grant to Convert it into a Trail Through Roselle Park and Kenilworth". TAPinto.
  36. ^ "Union County Connects – A County Connected by Trails". unioncountyconnects.org.
  37. ^ "Abandoned right-of-ways Union County". Google My Maps.
  38. ^ Barbara Rybolt (January 16, 2015). "Summit's own Highline would be 'crown jewel' in city's trail system". Independent Press.
  39. ^ Lillo, Andrea (March 11, 2002). "Bed Bath makes first acquisition with Harmon". Home Textiles Today. Retrieved October 27, 2013.
  40. ^ Cianciolo, Mike (March 26, 2007). "buybuy BABY Gets Bought". The Motley Fool. Retrieved October 27, 2013.
  41. ^ Hsu, Tiffany (May 9, 2012). "Bed Bath & Beyond to Buy Cost Plus for $495 Million". Los Angeles Times. Retrieved October 27, 2013.
  42. ^ Dealbook Blog (May 9, 2012). "Bed Bath & Beyond to Buy Cost Plus". The New York Times. Retrieved October 27, 2013.
  43. ^ "Bed Bath buys Linen Holdings for $105 million". Reuters. June 1, 2012. Archived from the original on October 29, 2013. Retrieved October 27, 2013.
  44. ^ Brooke, Aliza (August 10, 2015). "Indie Design Retailer Of a Kind Acquired by Bed Bath & Beyond". Fashionista. Retrieved February 19, 2016.
  45. ^ Kapner, Suzanne (June 14, 2016). "Bed Bath & Beyond Buys One Kings Lane for 'Not Material' Price". The Wall Street Journal. Retrieved July 6, 2016.
  46. ^ Bed Bath & Beyond Canada L.P. corporate profile, Bloomberg, retrieved December 13, 2016
  47. ^ "Bed Bath & Beyond Inc. Announces Joint Venture with Home & More, a Home Products Retailer in Mexico". Bed Bath & Beyond. Archived from the original on October 28, 2013. Retrieved October 27, 2013.
  48. ^ "Bed Bath & Beyond - Frequently asked questions". Archived from the original on December 22, 2017. Retrieved June 6, 2016.

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