Topline
Shares of struggling retailer Bed Bath & Beyond traded sharply lower on Tuesday following the death of chief financial officer Gustavo Arnal over the weekend, which was later ruled as a suicide by the New York City Medical Examiner’s Office.
The company has appointed its chief accounting officer as interim CFO.
Key Facts
Bed Bath & Beyond’s stock fell over 18% to around $7 per share on Tuesday, adding to recent losses a day after CFO Gustavo Arnal’s death was ruled a suicide by medical examiners.
Arnal died Friday after falling from a skyscraper in New York’s Tribeca neighborhood, local police and Bed Bath & Beyond confirmed over the weekend.
The retailer said on Sunday it was “profoundly saddened by this shocking loss,” crediting Arnal as “instrumental in guiding the organization throughout the coronavirus pandemic.”
The CFO’s death comes just days after Bed Bath & Beyond’s strategic update last week, when the company announced it would save roughly $250 million in costs by closing 150 stores and laying off 20% of staff.
The home goods retailer, which has faced inventory struggles and declining sales this year, had also recently secured over $500 million in new financing—to pay down existing debt and shore up cash levels—from JPMorgan and Sixth Street Partners.
Bed Bath & Beyond announced in new filings on Tuesday morning that, following Arnal’s death, chief accounting officer Laura Crossen would be appointed as interim CFO.
Key Background:
Bed Bath & Beyond shares have swung wildly this year, once again considered a favorite of the meme stock crowd in recent months. Despite jumping over 60% in August, the stock is still down over 50% so far in 2022, with losses outpacing the broader market. Shares surged in early August as retail investors from forums like Reddit’s WallStreetBets bought up shares, but tanked once again on August 18, when GameStop chairman and activist investor Ryan Cohen sold his roughly 10% stake in the company. The stock has continued to remain volatile since, especially as details about new financing and cost cuts have emerged in recent weeks.
What To Watch For:
Arnal was one of several people, notably along with Ryan Cohen, named in a recent class action alleging a “pump and dump” scheme to artificially inflate Bed Bath & Beyond’s stock price. The lawsuit, filed on August 23 in the U.S. District Court for the District of Columbia, accuses Cohen of approaching Arnal about a mutually beneficial plan to boost shares of the company in the short term so that they could both profit.
If you or someone you know is thinking about suicide, please call the National Suicide Prevention Lifeline at 800-273-TALK (8255) or text the Crisis Text Line at 741-741.
Further Reading:
Bed Bath & Beyond CFO Dies After Falling From New York Skyscraper (Forbes)
Bed Bath & Beyond Tanks Nearly 30% As It Announces Layoffs And Store Closures (Forbes)
Bed Bath & Beyond Shares Jump Nearly 15% After Company Reportedly Secures New Financing (Forbes)
Bed Bath & Beyond Falls Over 40% After Investor Ryan Cohen Sells His Entire Stake (Forbes)
Source: https://www.forbes.com/sites/sergeiklebnikov/2022/09/06/bed-bath–beyond-shares-down-15-after-cfo-dies-by-suicide/