Bed Bath & Beyond’s CEO Sue Gove Hosts Suppliers in Plea for Support
On her first day as permanent chief executive of
Bed Bath & Beyond Inc.,
BBBY 1.10%
Sue Gove
made a plea to suppliers of the struggling home goods retailer: Stick with us.
The company hosted roughly 500 suppliers virtually and at its Union, N.J., headquarters for a two-hour summit in which executives laid out their strategy for resuscitating the chain, which has been reeling from a failed overhaul under prior management that led to plunging sales, a cash crisis and a leadership vacuum. In September, its finance chief died by suicide.
Ms. Gove, a veteran retail executive who had served on the company’s board, had been interim CEO since June. She succeeded
Mark Tritton,
whose attempt to replace national brands with private-label goods alienated shoppers. Bed Bath & Beyond made her position permanent on Wednesday. She will continue to serve as a director.
Ms. Gove said the company had enough money to make the necessary changes to its business, which includes bringing back more national brands, upgrading its supply chain and improving digital operations. “We don’t think there is bankruptcy on our horizon,” she said.
The company launched a debt-exchange earlier this month to extend maturities and reduce interest expenses. Bondholders have the option to receive new notes at par for a lower coupon or take a discount on the principal. Ms. Gove said the exchange was in the early stages, but she was optimistic about its outcome.
Key to winning back customers is bringing back national brands that were pushed aside to make way for Bed Bath & Beyond’s private-label goods. Ms. Gove said she has had one-on-one conversations with the company’s top 20 suppliers and received positive feedback.
Ms. Gove said the supplier summit on Wednesday was a “call to action” to ensure that suppliers are getting their needs fulfilled and, in turn, delivering what Bed Bath & Beyond needs—products to stock its shelves.
“There were some challenges under prior regimes, but I believe we are on a solid footing to repair the relationships,” she said.
Bed Bath & Beyond had fallen behind on payments to suppliers, but in recent months has been catching up, helping to ensure it will have enough goods to sell during the busy holiday season. “Our accounts payable are as clean as they have ever been,” Ms. Gove said.
Neil Saunders,
a managing director of research firm
GlobalData
PLC, said making Ms. Gove the permanent CEO was sensible and pragmatic. “At this point in time, consistency and a steady hand on the tiller are far more important than getting a different CEO who wants to shake things up or start putting in place new plans,” he said.
In August, the company said it would close 150 Bed Bath & Beyond stores and slash its corporate and supply-chain staff by a fifth. It also raised more than $500 million in new financing. It currently has about 768 Bed Bath & Beyond locations and operates the Buybuy Baby and Harmon drug and beauty chains.
Days after securing the new financing, Bed Bath & Beyond Finance Chief
Gustavo Arnal
killed himself. He had been feeling the stress of the intensifying financial crisis at the company, people familiar with the situation said.
Ms. Gove declined to comment on Mr. Arnal’s death beyond saying that he was a good friend and colleague.
Bed Bath & Beyond shares were rocked this year along with what are known as “meme” stocks after billionaire investor and
Chewy.com
founder
Ryan Cohen
took a stake, agitated for change and then dumped his entire position.
On Wednesday, Bed Bath & Beyond’s shares closed down 5.6% to $5. The shares have lost more than 64% of their value over the past 12 months.
In its latest quarter ended Aug. 27, Bed Bath & Beyond’s sales fell 28% and its net loss widened. Ms. Gove said sales won’t rebound instantly. “We’ve got much work to do,” she said.
Write to Suzanne Kapner at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
On her first day as permanent chief executive of
Bed Bath & Beyond Inc.,
BBBY 1.10%
Sue Gove
made a plea to suppliers of the struggling home goods retailer: Stick with us.
The company hosted roughly 500 suppliers virtually and at its Union, N.J., headquarters for a two-hour summit in which executives laid out their strategy for resuscitating the chain, which has been reeling from a failed overhaul under prior management that led to plunging sales, a cash crisis and a leadership vacuum. In September, its finance chief died by suicide.
Ms. Gove, a veteran retail executive who had served on the company’s board, had been interim CEO since June. She succeeded
Mark Tritton,
whose attempt to replace national brands with private-label goods alienated shoppers. Bed Bath & Beyond made her position permanent on Wednesday. She will continue to serve as a director.
Ms. Gove said the company had enough money to make the necessary changes to its business, which includes bringing back more national brands, upgrading its supply chain and improving digital operations. “We don’t think there is bankruptcy on our horizon,” she said.
The company launched a debt-exchange earlier this month to extend maturities and reduce interest expenses. Bondholders have the option to receive new notes at par for a lower coupon or take a discount on the principal. Ms. Gove said the exchange was in the early stages, but she was optimistic about its outcome.
Key to winning back customers is bringing back national brands that were pushed aside to make way for Bed Bath & Beyond’s private-label goods. Ms. Gove said she has had one-on-one conversations with the company’s top 20 suppliers and received positive feedback.
Ms. Gove said the supplier summit on Wednesday was a “call to action” to ensure that suppliers are getting their needs fulfilled and, in turn, delivering what Bed Bath & Beyond needs—products to stock its shelves.
“There were some challenges under prior regimes, but I believe we are on a solid footing to repair the relationships,” she said.
Bed Bath & Beyond had fallen behind on payments to suppliers, but in recent months has been catching up, helping to ensure it will have enough goods to sell during the busy holiday season. “Our accounts payable are as clean as they have ever been,” Ms. Gove said.
Neil Saunders,
a managing director of research firm
GlobalData
PLC, said making Ms. Gove the permanent CEO was sensible and pragmatic. “At this point in time, consistency and a steady hand on the tiller are far more important than getting a different CEO who wants to shake things up or start putting in place new plans,” he said.
In August, the company said it would close 150 Bed Bath & Beyond stores and slash its corporate and supply-chain staff by a fifth. It also raised more than $500 million in new financing. It currently has about 768 Bed Bath & Beyond locations and operates the Buybuy Baby and Harmon drug and beauty chains.
Days after securing the new financing, Bed Bath & Beyond Finance Chief
Gustavo Arnal
killed himself. He had been feeling the stress of the intensifying financial crisis at the company, people familiar with the situation said.
Ms. Gove declined to comment on Mr. Arnal’s death beyond saying that he was a good friend and colleague.
Bed Bath & Beyond shares were rocked this year along with what are known as “meme” stocks after billionaire investor and
Chewy.com
founder
Ryan Cohen
took a stake, agitated for change and then dumped his entire position.
On Wednesday, Bed Bath & Beyond’s shares closed down 5.6% to $5. The shares have lost more than 64% of their value over the past 12 months.
In its latest quarter ended Aug. 27, Bed Bath & Beyond’s sales fell 28% and its net loss widened. Ms. Gove said sales won’t rebound instantly. “We’ve got much work to do,” she said.
Write to Suzanne Kapner at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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