A group of activist funds is preparing to launch a proxy fight to replace Bed Bath & Beyond's (BBBY - Get Report) board, a report said.

The Wall Street Journal identified the activist funds as Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC.

The funds control about 5% of the retailer, The Wall Street Journal reported.

The funds have been preparing an effort to replace all 12 members of the retailer's board, according to the report, which cited people familiar with the matter. The group also wants the company to replace CEO Steven Temares, who has led the company since 2003, and better align compensation with performance, the Journal reported.

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