Bed Bath & Beyond (NASDAQ:BBBY) said Wednesday that it has appointed interim Chief Executive Officer Sue Gove to the position permanently.
Shares fell 32 cents, or 6.1% in early trading on Wednesday to $4.97 after the announcement. The stock has fallen about 63% so far this year as of Tuesday’s close. The company’s market cap now stands at about $425 million.
Gove, a company board member and long-time retail consultant, is stepping into the role at a pivotal time for the home goods retailer. Bed Bath is trying to reverse declining sales, win back customers and strengthen relationships with suppliers. It is also gearing up for the holiday season, a key quarter that could determine whether it can stabilize its finances.
Gove was named interim CEO in June after the company’s board pushed out former CEO Mark Tritton. She is the founder of a retail consulting and advisory firm, Excelsior Advisors.
Gove has already overseen major changes at the company. In late August, Bed Bath announced cost cuts and a new loan on a call with investors. At the time, it said it would close 150 of its namesake stores and reduce its head count by about 20% across its corporate and supply chain workforce.
It secured more than $500 million in new financing, including a $375-million loan through Sixth Street Partners, a lender that has provided financing to other retailers including J.C. Penney and Designer Brands. It also expanded its $1.13 billion asset-backed revolving credit facility.
