Home and decor retailer Bed Bath & Beyond (BBBY) on Wednesday announced the appointment of four new board members as part of a truce with a group of activist investors who had been pushing to add their own selection of board members to the struggling company's board.
The Union, N.J.-based company said it has approved adding four new independent directors to its board - John Fleming, Sue Gove, Jeffrey Kirwan and Joshua Schechter - bringing the total number of board directors to 13.
A group of private investors including Legion Partners, Macellum Advisors and Ancora Advisors had been pressuring Bed Bath & Beyond to shake up its board with a slate of 10 recommended nominees as part of its push to force the company to cut costs and revamp its focus. The group collectively own approximately 5.23% of Bed Bath & Beyond's outstanding shares.
As part of the agreement, the group has agreed to withdraw its own slate of nominees and vote in favor of all of the Bed Bath & Beyond-recommended director nominees at the company's 2019 and 2020 annual shareholder meetings. Litigation filed by one of the group's members is also being withdrawn and dismissed, Bed Bath & Beyond said.
Shares of Bed Bath & Beyond were inactive in premarket trading on Wednesday. They ended the trading day Tuesday down 2.6% at $13.50.