Yahoo Finance Bed Bath & Beyond interim CEO may be stuck with a sinking ship for now
Captain Gove is likely to steer the sinking SS Bed Bath & Beyond for the foreseeable future.
On Thursday, Reuters reported that Bed Bath & Beyond interim CEO Sue Gove could stay in the role for at least a year despite her "interim" desk nameplate. When asked for comment on the CEO search, a Bed Bath & Beyond spokesperson didn't knock down the report.
"As recently shared, the Board is pleased and confident that Sue will have a significant, positive impact on the Company's performance," the spokesperson told Yahoo Finance in an email. "We are in the search process for the next Chief Executive Officer and will provide an update when appropriate."
As it stands, the search for a top CEO from outside the organization would be beyond difficult, given the retailer's state of turmoil.
The company revealed drastic steps in late August to raise cash through $500 million in debt financing and a potential 12 million share sale, cut expenses by closing 150 stores and laying off 20% of its workforce, and shake up the executive leadership for its Bed Bath & Beyond and buybuy Baby brands.
Despite these efforts, investors remain fearful of what happens next at Bed Bath & Beyond.
The main concern is that Bed Bath & Beyond's poor performance and its weak balance sheet could force the company to raise even more cash in 2023. Where and when that cash comes in — and at what cost — are still great unknowns.
With same-store sales falling 26% in the most recent quarter, no incoming CEO would want "failed to save Bed Bath & Beyond" on their LinkedIn profile.
"They need to get the customer back into the store," Goldman Sachs Retail Analyst Kate McShane said during Yahoo Finance Live's exclusive coverage of the 29th annual Goldman Sachs retail conference last week.
In the meantime, the company's finance team, which is playing a starring role in trying to save the retailer, is still reeling after the tragic suicide of its one-time CFO, Gustavo Arnal. Bed Bath & Beyond announced last week its chief accounting officer, Laura Crossen, would take over as CFO.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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