Bed Bath and Beyond CEO Steps Down After Stakeholder Pressure

Bed Bath and Beyond has released a statement regarding its leadership transition as former CEO Jonathan Johnson steps down just days after activist hedge fund JAT Capital called for his ouster.

In recent developments, JAT Capital, a major stakeholder in Beyond Inc. (formerly Overstock.com Inc.) with a 9.6% share, sent a letter to the company’s board on Thursday. It criticized the CEO, Johnson, for the company’s subpar financial performance, suggesting that he be “removed immediately.”

According to the letter disclosed in a securities filing, Johnson’s tenure has been marked by substandard performance, “as demonstrated by the company’s financials relative to its peer group.” Added to this, poor communication with investors and the sell-side community has also been a concern, not to mention actions that seem to prioritize his interests over those of the company.

JAT Capital pitched Marcus Lemonis, CEO of Camping World and the famous face from CNBC’s “The Profit,” as a potential replacement. Lemonis, who joined the Overstock board last month, has already applauded its transformation to Beyond Inc., which was put into effect on Monday.

“I am incredibly proud of all that we have achieved to transform the company since becoming CEO — evolving to a leading online home retailer with an iconic name and a large, growing consumer base. As the company turns the page to become Beyond, now is the right time for me to also turn the page to the next chapter in my career. It has been an honor to work with such an exceptional team. I am confident the company is well-positioned to achieve broader popular reach as a bigger and better Beyond.”

Jonathan Johnson via Beyond Inc.

Johnson has been at the helm of Overstock since 2019, overseeing the company through its major acquisition of Bed Bath & Beyond earlier this year after it was liquidated in June, to the surprise of many. In the interim, David Nielsen, Beyond’s president and a former Payless ShoeSource executive, has assumed the role of CEO as the board initiates its search for a permanent replacement. Beyond Inc. noted in its announcement that Johnson’s departure is the result of a “mutual agreement” between him and the board to transition to newer leadership.