Bed Bath & Beyond Inc. BBBY,
Monday that it has confirmed received a letter from RC Ventures, the investment arm of Ryan Cohen, the billionaire co-founder of online pet-products retailer Chewy Inc. CHWY,
as reported earlier by the Wall Street Journal. “Bed Bath & Beyond’s Board and management team maintain a consistent dialogue with our shareholders and, while we have had no prior contact with RC Ventures, we will carefully review their letter and hope to engage constructively around the ideas they have put forth,” the company said in a statement. It added that after one year of its multi-year transformation plan, it is confident it will create “significant long-term shareholder value.” In the letter sent late Sunday, Cohen, whose firm owns a 9.8% stake in Bed Bath & Beyond making it one of its top five shareholders, said the board to is failing to stem sustained market share losses, noting that core sales dropped 14% from a year ago in the most recent quarter. The investor is urging the company to narrow the focus of its turnaround and explore a separation of the Buybuy Baby chain, or a sale of the entire company. Bed Bath & Beyond shares soared 46% premarket on the news.