Bed Bath & Beyond CEO Ousted Just Days After Activist Investor Calls for His Removal

Bed Bath & Beyond's chief executive is stepping down, the company said Monday, less than a week after an activist investor called for his ouster.

The home goods retailer, whose name and intellectual property were purchased out of bankruptcy in June and merged with the online retailer formerly known as Overstock.com, said Jonathan Johnson would depart immediately and that company President David Nielsen would serve as interim CEO while the board launches a search for a permanent replacement.

Johnson was Overstock's CEO since 2019 and handled its acquisition of Bed Bath & Beyond. In September, Overstock and Bed Bath & Beyond launched a joint website under the latter's name.

"Following the recent acquisition of the Bed Bath & Beyond brand and our corporate renaming as Beyond, Inc., the Board and Jonathan determined that this is the ideal time for a transition in leadership to guide the company forward,” said Allison H. Abraham, Chair of the Board of Directors, in a press release.

The news comes just days after JAT Capital, which owns a 9.6% stake in Beyond, sent a letter Nov. 2 to the company's board asking for Johnson's removal, citing poor performance.

"The current CEO needs to be removed immediately," said the letter signed by JAT Capital founder and portfolio manager John A. Thaler. "He has performed poorly (as demonstrated by the company’s financials relative to its peer group), he has communicated poorly with investors and the sell-side community, and he has recently taken actions that give the appearance that his own interests are being prioritized."

In the letter, Thaler named Marcus Lemonis, a member of the board, as a possible replacement. Lemonis currently serves as CEO of the RV and camping gear retailer Camping World. He is also the host of CNBC's The Profit.