(Reuters) – Bed Bath & Beyond said on Friday it appointed three new directors to its board as part of its settlement with Ryan Cohen, weeks after the billionaire investor pushed for strategic alternatives at the home goods retailer.
Shares of New Jersey-based Bed Bath & Beyond jumped about 7% in premarket trade, after the company added that two of the directors would be part of a committee focused on exploring alternatives for the company’s buybuy Baby chain.
Cohen, who disclosed a nearly 10% stake in the company earlier this month, had criticized the retailer for an “overly ambitious” strategy and overpaying its top executives, and urged it to explore alternatives including separating its buybuy Baby chain and full sale of the company.
The board will temporarily expand to 14 members before reverting to 11 members following the annual meeting, the company said in a statement.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shinjini Ganguli)
