Bed Bath & Beyond shares surge after the company received bids for the Buybuy Baby unit

A look at the atmosphere during the Whitney Port & Bundle Organics #MomAsYouAre buybuyBABY product launch on November 17, 2018 in Torrance, California.

Randy Shropshire | Getty Images

Bed Bath & Beyond shares rose on news that the company is considering bids to buy its buy-buy baby business.

The Wall Street Journal reported, citing unnamed sources. According to the report, private equity firm Cerberus Capital Management and Tailwind Acquisition are among the companies interested in the baby clothing and supplies retailer.

The homewares retailer recently struck a deal with activist investor Ryan Cohen, chairman of GameStop and co-founder of Chewy, who owns a stake in the company through his company RC Ventures. As part of the agreement, Bed Bath agreed to conduct a strategic review of BuyBuy Baby, one of the company’s bright spots. It also agreed to add three new directors to its board as part of the armistice.

The company did not immediately respond to requests for comment.

Led by CEO and Target veteran Mark Tritton, Bed Bath & Beyond is looking to refresh its businesses and brand. But investors — including Cohen — have grown impatient as the company sees declining sales and struggles with supply chain bottlenecks.

Same-store sales fell 12% for the most recent quarter ended Feb. 26 compared to the prior-year period across Bed Bath’s store. For the past two quarters, Bed Bath said it missed about $275 million in total sales as it struggled to get goods out of ports and onto shelves, resulting in many popular items being out of stock be.

Meanwhile, same-store sales of BuyBuy Baby grew in the low single digits last quarter.

In an interview with CNBC in mid-April, Tritton said that Bed Bath’s eponymous store banner and baby banner are in different stages. “Where we have one company undergoing reformation, we have another undergoing accelerated growth,” he said.

He said shareholders would not credit the parent company for growth in the baby business.

But, he said, “there’s no definite sense that we’re going to spin off BuyBuy Baby. We have agreed to review BuyBuy Baby’s strategic priority and how we can unlock shareholder value more profitably. And there are a number of options on the table.” Bed Bath & Beyond shares surge after the company received bids for the Buybuy Baby unit

Gary B. Graves

World Time Todays is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button