Overstock.com CEO Jonathan Johnson, June 29, 2023.
Scott Mlyn | CNBC
The new Bed Bath & Beyond introduced Monday its CEO, Jonathan Johnson, is immediately stepping down from his place simply days after activist hedge fund JAT Capital called for his ouster.
JAT Capital, which has a 9.6% stake within the firm, despatched a letter to the board dated Thursday that blamed Johnson for the corporate’s poor monetary efficiency and mentioned he must be “eliminated instantly.”
“He has carried out poorly (as demonstrated by the corporate’s financials relative to its peer group), he has communicated poorly with buyers and the sell-side neighborhood and he has lately taken actions that give the looks that his personal pursuits are being prioritized,” mentioned the letter, which was revealed in a securities filing.
In the letter, JAT mentioned Marcus Lemonis, the Camping World CEO and TV character who starred in CNBC’s “The Profit,” ought to take over administration of the corporate. He joined the Overstock board final month and has cheered its transition to Beyond Inc., which took impact Monday.
Johnson had been Overstock’s chief govt since 2019. He led the corporate via its acquisition of Bed Bath & Beyond earlier this yr.
David Nielsen, Beyond’s president and a former Payless ShoeSource govt, has taken over as interim CEO whereas the board undergoes a search for a everlasting candidate.
“Following the current acquisition of the Bed Bath & Beyond model and our company renaming as Beyond, Inc., the Board and Jonathan decided that this is the perfect time for a transition in management to information the corporate ahead,” Allison Abraham, Beyond’s board chair, mentioned in a press release.
Beyond mentioned Johnson’s departure “follows mutual settlement” between him and the board to transition the corporate to new management, however the transfer got here on all of a sudden. About two weeks in the past, the corporate had informed reporters Johnson can be in New York on Monday – the identical day its company identify change went into impact – and mentioned he can be out there for conferences that afternoon.
The firm and Johnson did not instantly return a request for remark searching for extra data.
“As the corporate turns the web page to change into Beyond, now is the correct time for me to additionally flip the web page to the following chapter in my profession,” Johnson mentioned in a press release. “It has been an honor to work with such an distinctive crew. I’m assured the corporate is well-positioned to realize broader widespread attain as a much bigger and higher Beyond.”
Johnson had been with the corporate for greater than 20 years and took over as chief govt after its founder and former CEO, Patrick Byrne, disclosed he had a relationship with a Russian spy.
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