Bed Bath & Beyond surged greater than 70% in premarket buying and selling Monday after GameStop Chairman Ryan Cohen revealed he had an almost 10% stake within the retailer, via his funding firm RC Ventures.

Cohen, who additionally co-founded the web pet retailer Chewy, wrote in a letter to Mattress Tub’s board that he believes the retailer is struggling to reverse market share losses and to navigate provide chain woes. He additionally criticized high executives for reaping compensation during times of underperformance.

“We imagine Mattress Tub must slim its focus to fortify operations and keep the precise stock combine to satisfy demand, whereas concurrently exploring strategic alternate options that embody separating Buybuy Child, and a full sale of the corporate,” mentioned Cohen.

In response to the letter, which Mattress Tub mentioned it obtained on Sunday night, the big-box retailer mentioned that it has had no prior contact with RC Ventures.

“We are going to rigorously evaluate their letter and hope to interact constructively across the concepts they’ve put forth,” Mattress Tub mentioned in a press release. “2021 marked the primary 12 months of execution of our daring, multi-year transformation plan, which we imagine will create important long-term shareholder worth.”

Mattress Tub shares have dropped almost 45% within the final 12 months.

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