Bed Bath & Beyond shares began 15% down in early trade Tuesday following the death of one of the company’s senior executives.
Gustavo Arnal, the ailing retailer’s chief financial officer, fell to his death from a high-rise apartment in Manhattan on Friday afternoon. The New York Police Department said in a statement Sunday that Arnal, 52, was discovered unconscious and unresponsive outside his luxury 57-story tower in the Tribeca area.
Arnal began his career in finance with Avon, Walgreens Boots Alliance, and Procter & Gamble before joining Bed Bath & Beyond in May 2020.
Amal was listed as a defendant in a class action complaint that accused him, Ryan Cohen, and other significant shareholders of participating in a “pump and dump” conspiracy to artificially raise the company’s stock price. The case was filed in the United States District Court for the District of Columbia last month.
Financial difficulties have hit Bed Bath & Beyond hard. By reducing its workforce and operations, the firm hopes to save itself and avoid filing for bankruptcy. The retailer said last week that it will lay off around 20% of its corporate workforce, liquidate approximately 150 shops, and eliminate some of its in-house home goods brands. More than $500 million in funding was obtained by the company to assist stabilize its bleak financial condition, the company reported.
Bed Bath’s difficulties are exacerbated by a trend away from popular shopping categories, like as home furnishings, as people spend more on services such as dining out and tourism. Other shops, such as Walmart and Kohl’s, have witnessed a drop in discretionary spending as customers spend more on food and needs due to inflation.
Bed Bath & Beyond’s same-store sales have been declining in recent months. Last week, the firm reported a 26% drop in same-store sales for the three months ending Aug. 27.
The stock of the firm has dropped by more than 50% since the beginning of the year, and has lost 35% of its worth in the last month alone.
Laura Crossen, the company’s senior vice president of finance, was designated temporary CFO on Tuesday, and she will continue to serve as its principal accounting officer.
Stores belonging to this company may be found all throughout the North American continent and the island of Puerto Rico. In 1971, Bed Bath & Beyond opened its doors to the public. It’s on both the Fortune 500 and the Forbes Global 2000 lists.
