Bed Bath & Beyond shakes up board amid investor pressure, co-founders step down

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(Reuters) – Bed Bath & Beyond Inc said it appointed five new independent members to its board, replacing some directors including co-founders Warren Eisenberg and Leonard Feinstein, after facing pressure from a trio of activist investors.

FILE PHOTO: The sign outside the Bed Bath & Beyond store is seen in Westminster, Colorado, June 22, 2016. REUTERS/Rick Wilking

Shares of the New Jersey-based home furnishing retailer rose about 2 percent before the bell.

Last month, activist investors Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC urged Bed Bath & Beyond to replace its entire board and oust Chief Executive Steven Temares, citing the company’s inability to grow sales and margins.

The activist investors own about 5 percent stake in the company.

Bed Bath & Beyond has struggled to keep pace with changing consumer tastes and shopping habits over the years, even after introducing experimental store formats, investing in its decorative furnishing business and digital platforms.

In its latest results, the retailer forecast dismal first-quarter profits that raised doubts on the efficacy of its turnaround plan.

“The changes announced today reflect significant shareholder input and underscore our commitment to ensuring we have best-in-class governance,” said Patrick Gaston, who