(Bloomberg) — RC Ventures, an investment firm started by GameStop Corp. Chairman Ryan Cohen, disclosed a large stake in Bed Bath & Beyond Inc. and is pushing the company to explore selling itself.
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The 9.8% stake puts Cohen among the retailer’s five biggest shareholders.
Cohen, also a co-founder of pet supply retailer Chewy Inc., urged Bed Bath & Beyond to spin off or sell its baby products business, according to a letter sent to the company’s board Sunday. He said it should also evaluate a sale of the entire company to a well-capitalized buyer.
His firm argues in the letter that the retailer’s executives received “outsized” compensation relative to its performances.
“We are supportive of corporate leaders receiving significant compensation when they produce superior shareholder returns,” Cohen wrote. “But when it comes to Bed Bath, we contend there need to be improvements to the company’s executive compensation structure and a stronger ownership mentality in the boardroom.”
A representative for Bed Bath & Beyond didn’t immediately respond to a request for comment. The RC Ventures letter was reported earlier by the Wall Street Journal.
Shares of Bed Bath & Beyond have fallen about 42% in the past year, while the S&P 500 rose about 13% during the same period.
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