NEW YORK, Sept 13 (Reuters) - Bed Bath & Beyond Inc's interim CEO Sue Gove will likely lead the financially struggling retailer for at least 12 months, a source familiar with the matter said, as the chain looks to bolster its business after seeing sales plummet.
The retailer, which announced a search for a new, permanent CEO in June, will not pick a new leader until well into 2023, two sources familiar with the matter said.
"It's what people want and feel is needed," one of the sources said.
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Bed Bath & Beyond appointed Gove, who is on its board of directors and is a retail consultant, as its interim CEO in June. According to her employment agreement, Gove was hired "on an at-will basis" for a one-year term effective June 23.
Her appointment came after the firing of CEO Mark Tritton, following a sales slump and an unsuccessful move into private-label products. read more
Its chief financial officer, Gustavo Arnal, jumped to his death from a Tribeca skyscraper this month. read more
A spokesperson for Bed Bath & Beyond did not immediately return a request for comment.
Bed Bath & Beyond faces a critical holiday season where it must show its strategy to turn around its business is reversing sales losses and bringing customers back.
The big-box home goods store has gone through several months of significant upheaval as the chain, once considered a category killer, begins closing stores, cutting jobs and overhauling its merchandising strategy.
In late August, it said it secured commitments for more than $500 million in new financing and that it was in the "earliest phase" in its search for a permanent CEO. read more
Chewy Inc (CHWY.N) co-founder Ryan Cohen, formerly Bed Bath & Beyond's biggest shareholder, had targeted Tritton's performance as CEO, spurring his departure. Cohen had disapproved of Tritton's $27 million salary and "overly ambitious" strategy. read more
Cohen, who is also the chairman of Gamestop Corp (GME.N) , held 9.8% of Bed Bath & Beyond's common stock until dumping his shares in mid-August.
Gove has been on Bed Bath & Beyond's board of directors since 2019. She previously was the CEO of Golfsmith International, a specialty golf retailer, and chief operating officer of Zale Corporation, a mall-based jewelry retailer.
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Thomson Reuters
New York-based reporter covering U.S. consumer products spanning from paper towels to packaged food, the companies that make them and how they're responding to the economy. Previously reported on corporate boards and distressed companies.