In a move that continues a sequence of changes that followed the departure of former leader Mark Tritton, Bed Bath & Beyond has named Sue Gove president and CEO after four months of service as interim CEO.
Under Gove’s leadership, Bed Bath & Beyond noted, the company will continue executing a strategic plan announced on August 31, with a priority on strengthening the company’s financial positioning, increasing customer engagement, driving traffic and recapturing market share.
Key actions Bed Bath & Beyond has taken under Gove’s leadership, the company stated, include:
- Securing new financing, including an upsized $1.13 billion asset-backed revolving credit, or ABL, facility and a $375 million first-in-last-out, or FILO, facility.
- Launching and completing a 12 million share at-the-market, or ATM, offering program.
- Authorizing a new $150 million ATM offering program.
- Improving cost structure through targeted expense reductions, real estate optimization and reductions in capital expenditures.
- Initiating an exchange offer for the company’s outstanding senior notes.
- Rebalancing the Bed Bath & Beyond assortment and inventory positioning by increasing investments in popular national brands and exiting a third of the company’s own brands, all to reflect customer preference.
- Accelerating strategic plans at buybuy Baby to organically unlock greater value.
- Growing the cross-banner Welcome Rewards loyalty program to 8 million members.
- Realigning organizational structure to better support strategic priorities, which included the creation of brand president roles for the Bed Bath & Beyond and buybuy Baby banners.
- Supporting supplier partners and strengthening relationships, including initiating Bed Bath & Beyond’s first supplier summit.
“We are pleased to announce the appointment of Sue as chief executive officer,” said Harriet Edelman, independent chair of Bed Bath & Beyond’s board, in announcing the appointment. “Sue is the best person to serve at the helm of Bed Bath & Beyond and continue leading the company. During her tenure as interim CEO, Sue took consequential actions to increase liquidity and establish the groundwork to improve customer loyalty, traffic and market share. Her intense focus on cash and expertise in managing working capital and liquidity are matched by a great operating mind and further complemented by a new leadership team that brings deep merchant, omni and digital expertise in modern retailing. A strong team builder and hands-on leader, Sue has earned the trust of associates across headquarters, stores and operations and is working alongside our two brand presidents to support our important supplier community. On behalf of the board of directors and Bed Bath & Beyond’s leadership and associate teams, we congratulate Sue and are confident that her unique mix of talent, experience and drive is best suited to deliver improved growth, profitability and shareholder returns.”
Gove said, “I look forward to continuing our important work alongside our highly engaged management team and board as CEO. At Bed Bath & Beyond, we have never been more strategically and culturally focused, and I remain dedicated to executing on our back-to-basics philosophy, accelerating our performance, and focusing on financial returns. I am also pleased with the completion of our ATM program and possible launch of a new offering program to further support and drive our strategic imperatives. To ensure our customers have access to an assortment of compelling brands, we are engaging our valued supplier community in new ways to strengthen relationships and foster collaboration. I am energized by the initiatives underway to provide our customers with an exceptional shopping experience, easily accessible products and compelling values across our Bed Bath & Beyond, buybuy Baby, and Harmon brands. We have a significant opportunity ahead, and we intend to regain our dominance as a preferred shopping destination.”