eastunder
1 year ago
Bed Bath & Beyond’s new CEO exited. Now what?
Jonathan Johnson bet it all on the home retailer, rebranding Overstock in the process. Then activists called for his ouster.
Published Nov. 16, 2023
Nate Delesline III
https://www.retaildive.com/news/bed-bath-beyond-ceo-jonathan-johnson-exited-post-bankruptcy-now-what/698824/
Months after buying Bed Bath & Beyond’s brand out of bankruptcy and weeks after announcing the relaunch of Overstock.com, e-commerce retailer Beyond remains in flux. Overstock brought the brands together this summer with the $21.5 million purchase of Bed Bath & Beyond’s brand assets at a bankruptcy auction.
The company made several big moves in quick succession — relaunching Bed Bath & Beyond’s e-commerce site, announcing plans to relaunch Overstock, and renaming itself Beyond. Then, most recently, Overstock CEO Jonathan Johnson, who oversaw the acquisition of Bed Bath & Beyond and led the e-retailer since 2019, left the company on Nov. 6. John Thaler, founder of investment firm JAT Capital, had recently called for Johnson’s removal, citing poor financial performance.
“JAT Capital does not call for changes at our portfolio companies often, and it is only after careful consideration and in circumstances that are particularly unusual,” Thaler wrote in a letter to the board. “This is one such case.” JAT Capital owns a nearly 10% stake in Beyond.
Thaler laid out a handful of concerns. They included the claim that management had lost the confidence of investors, shareholders and vendors, and that the rebranding as Bed Bath & Beyond was a “bet the company” moment that risked burning half of the company’s existing cash.
“[Johnson] has performed poorly (as demonstrated by the company’s financials relative to its peer group), he has communicated poorly with investors and the sell-side community, and he has recently taken actions that give the appearance that his own interests are being prioritized,” Thaler said.
Johnson’s exit comes just weeks before the critical holiday shopping season.
“The timing of CEO Jonathan Johnson’s departure seems abrupt,” Cristina Fernández, managing director and senior research analyst with Telsey Advisory Group, told Retail Dive in an email. “Although it makes sense that Overstock/Beyond Inc. would need a new leader to take the company to the next level, it seems too early for him to depart just a few months after the acquisition. Typically, we see leaders stay through the first year of an integration.”
How Bed Bath & Beyond got here
Just a few years ago, Bed Bath & Beyond had around 1,500 physical locations. It also owned a portfolio of other retail businesses, including BuyBuy Baby. But by this February, the company was in trouble. It sought $1 billion to sustain operations and pay debts. The turnaround efforts failed and Bed Bath & Beyond filed for Chapter 11 bankruptcy on April 23.
Then Overstock stepped in, with an aim of combining the two brands’ strengths. At the time, Johnson said Bed Bath & Beyond retained significant consumer cachet despite the bankruptcy. Under his leadership, Overstock moved to relaunch and rebrand itself to Bed Bath & Beyond.
Despite those efforts, the combined company delivered soft financial performance in its first couple of quarters post-acquisition. Beyond’s year-over-year Q2 revenue fell 20% to $422 million.
It fell 19% to $373 million in the third quarter. The company in Q3 also reported an operating loss of $41 million, a net loss of $63 million and a gross profit of $70 million, which represents nearly 19% of total revenue.
“Expectations about how quickly Overstock could benefit from the acquisition were perhaps too optimistic, given the lower demand for home furnishings currently and the struggles with the Bed Bath & Beyond brand that led to the company’s bankruptcy,” Fernández said. “The 3Q23 results accelerated pressure for a change at the top from activist investors.”
In an interview with Retail Dive conducted before he stepped down, Johnson acknowledged that both companies had issues.
Johnson said previously that Bed Bath & Beyond had an outdated business model. And under former CEO Mark Tritton, it tried a shift to a private label strategy that failed to resonate with customers. But Overstock also faced financial pressures.
“Frankly, we were facing a going concern opinion from our auditors,” Johnson recalled of when he first joined the company.
Additionally, in recent years, Overstock’s offering had evolved and no longer matched its name, which confused customers and vendors.
Beyond, in an announcement, characterized Johnson’s exit as a “mutual agreement.” But a Nov. 5 filing with the U.S. Securities and Exchange Commission indicates that Johnson left “at the request of the board.” Johnson will receive a severance that includes a lump sum payment of about $1.3 million 60 days after separating from the company, documents show.
In Johnson’s place, the company said President David Nielsen would take on additional responsibilities as interim CEO. Chief Financial Officer Adrianne Lee also took on expanded responsibilities by overseeing legal and human resources functions. As a result of Johnson’s departure, the board will shrink to eight members.
JAT Capital’s Thaler already has someone in mind to manage the company, though – Marcus Lemonis, who joined Beyond’s board in October. Lemonis is the current CEO of RV and outdoor gear retailer Camping World. Lemonis has indicated his interest in operating Beyond, Thaler said.
Clues in how Lemonis likes to do business can be taken from his eight seasons starring in “The Profit” on CNBC. In the reality show, Lemonis offered a financial investment of his own money in struggling small businesses in exchange for an ownership stake. Lemonis has taken the same tact at Beyond, “having already bought a significant amount of stock personally,” Thaler said in his letter.
‘It can be profitable’
On the same day Johnson left, after 20 years with Overstock, the company officially changed its corporate name to Beyond. It also left the Nasdaq and joined the New York Stock Exchange under the ticker BYON. But it’s keeping the Bed Bath & Beyond name for its consumer-facing e-commerce business.
Before stepping down, Johnson said he didn’t want to recreate the company’s large footprint of physical stores. But he did say opening Bed Bath & Beyond pop-up shops around back-to-school and back-to-college season was a possibility. He also reiterated the company would use its app to drive promotions, versus the big blue 20% off paper coupons Bed Bath & Beyond used in the past.
According to Fernández, it appears “Overstock’s strategy is to offer more coupons initially, while over time weaning back and making the consumer accustomed to its everyday low-price model.” The double rebranding and company revamp, Fernández said, “provides Overstock an opportunity to gain new customers.”
Michael Pachter, managing director of equity research for Wedbush Securities, echoed that sentiment. “Bed Bath & Beyond had way too many physical stores, had debt to service, and owned its inventory in a declining demand environment,” Pachter said in an email. “Overstock has no debt, only one fulfillment center, and very low fixed costs, so it can be profitable at a very low level of sales.”
Fernández said bringing both brands under one roof was a smart move. One of Johnson’s last announcements as CEO was that Beyond plans to relaunch Overstock as an off-price and closeout-focused e-retailer by the end of next year.
“A key reason for Overstock purchasing the Bed Bath & Beyond name is that many consumers and vendors incorrectly viewed Overstock as a liquidation site whereas Bed Bath & Beyond had a strong association with everyday home sales,” Fernández said. “As such, many vendors did not want to sell to Overstock.”
“In addition,” Fernández continued, “Overstock was known primarily for furniture, while Bed Bath & Beyond was known for bedding, bath and kitchen products. The name change has allowed Overstock to attract new vendors and expand into new categories, and it now has a more complete assortment to offer to consumers.”
But now, with Johnson gone and the company under interim leadership, it’s unclear if any of his visions for the company will come to fruition under whoever is selected as the new CEO.
Looking ahead, Fernández said Beyond has an opportunity on the table with the holidays.
“The holiday season is an important time of the year for retail and before the recent struggles, Bed Bath & Beyond did a solid business in holiday decor and cooking/entertaining. Overstock’s goal should be to gain share in these categories and stay in front of the consumer during a competitive period,” Fernández said.
eastunder
1 year ago
Overstock.com (OSTK) to Rebrand as Beyond, Inc, Will Change Ticker to BYON
https://www.streetinsider.com/Corporate+News/Overstock.com+%28OSTK%29+to+Rebrand+as+Beyond%2C+Inc%2C+Will+Change+Ticker+to+BYON/22303938.html#:~:text=Overstock.com%2C%20Inc.%20will%20continue%20to%20trade%20on%20the,when%20markets%20open%20on%20Monday%2C%20November%206%2C%202023.
Overstock.com, Inc. (NASDAQ: OSTK), which operates as Bed Bath & Beyond, today announced that it will change its corporate name to Beyond, Inc. effective November 6, 2023. Concurrently, with the corporate name change, the company will transfer its stock listing from the Nasdaq Global Market (NASDAQ) to the New York Stock Exchange (NYSE) and change its ticker symbol from OSTK to BYON. Following the corporate name change, Beyond, Inc. will continue to operate its furniture and home furnishings ecommerce business under the Bed Bath & Beyond brand.
On June 28, 2023, Overstock.com, Inc. acquired the Bed Bath & Beyond brand and associated intellectual property. Overstock was rebranded as Bed Bath & Beyond, launching bedbathandbeyond.ca (formerly overstock.ca) in Canada on June 29, 2023, followed by bedbathandbeyond.com (formerly overstock.com) and the brand’s new mobile app in the United States on August 1, 2023. Today, Bed Bath & Beyond sells a broad array of high quality, on-trend home products at competitive prices, including furniture, bedding and bath, patio and outdoor, area rugs, tabletop and cookware, décor, storage and organization, small appliances, home improvement, and more.
“Changing our corporate name to Beyond, Inc. sets us up well for a brighter future,” said Jonathan Johnson, Chief Executive Officer. “As we continue the process of transforming our consumer brand, our new corporate name will help us reach millions of new customers with our advantageous and differentiated, asset-light ecommerce business model. The name ‘Beyond’ emphasizes our commitment to connect new and legacy customers with a wide assortment of products and services. Since our founding in 1999, the company has focused on bringing technical expertise to ecommerce and providing a simple and easy experience for consumers and supplier partners. We expect the corporate name change to enhance the awareness of our iconic consumer brand, Bed Bath & Beyond.”
Overstock.com, Inc. will continue to trade on the NASDAQ with ticker symbol OSTK until the close of market on Friday, November 3, 2023. Beyond, Inc. will begin trading on the NYSE with ticker symbol BYON when markets open on Monday, November 6, 2023. On that day, to celebrate the transfer, representatives of Beyond, Inc. will ring the NYSE Opening Bell at 9:30 AM ET.
“We are grateful to NASDAQ for their partnership and support over the years," Johnson said. “We are thankful to the NYSE for welcoming us to its prestigious platform. We are excited to join many of the world’s biggest consumer brands, as we begin a new chapter in our corporate transformation.”
“We are thrilled to welcome Beyond, Inc. to the New York Stock Exchange,” said Lynn Martin, NYSE President. “Under its new name, Beyond, Inc. joins a world-class community of peers in the retail space at its new listing home, where it can leverage the visibility, unmatched trading platform and other advantages only found at the NYSE.”
drobx
3 years ago
From the Bitt website:
"Pelion took over as Bitt’s major shareholder in 2020 from Medici Ventures. Bitt generates revenues through servicing multiple stakeholders throughout the currency ecosystem and maturity of the currency. Network."
https://www.bitt.com/about/investor-relations
It sounds like Medici might still own some, but how much?
Wait, I will answer my own question:
"April 26, 2021 at 8:05 AM EDT
Overstock Closes Transaction with Pelion Venture Partners to Oversee Medici Ventures’ Blockchain Assets
PDF Version
Overstock is limited partner in blockchain fund
SALT LAKE CITY, April 26, 2021 (GLOBE NEWSWIRE) -- Overstock.com, Inc. (NASDAQ:OSTK), today announces it has closed its blockchain fund transaction with Pelion Venture Partners, a third-party venture capital firm with a proven track record of successfully investing in early stage companies. Overstock’s wholly owned blockchain-focused subsidiary, Medici Ventures, has been converted into a limited partnership (the “Fund”) and will be managed by Pelion MV GP, LLC, which will act as the general partner of the Fund. Overstock.com, Inc. is the sole limited partner of the Fund.
As the limited partner, Overstock has committed $45 million over the eight-year life of the Fund. The Fund will return invested capital to Overstock first and then split profits on successful exits as set forth in the Fund’s Limited Partnership Agreement. The Fund will hold a significant minority ownership stake in tZERO Group, Inc. (“tZERO”) and Overstock will retain a direct minority equity interest in tZERO."
https://investors.overstock.com/news-releases/news-release-details/overstock-closes-transaction-pelion-venture-partners-oversee
I can't say that I fully understand what is being said there though.
KarlDieGlatze
3 years ago
This post continues to be deleted on Yahoo Finance message board by the free speech censors with ulterior motives over there:
The 33 percent spread between the preferred on the "Nasdaq Pink Sheets" where it shouldn't be allowed to trade, and the common shares on the reg Nasdaq continues to be criminal.
JJ get your head out of your behind and do something instead of looking out windows pondering how lucky the company was to be saved now that you are in charge!
This was the good news I was looking for the other day, Anthony. Now the preferred STO is no longer at risk of being overturned, and should trade higher than the common but JJ needs to take action!
https://finance.yahoo.com/news/utah-district-court-again-rules-123000394.html
Decision dismisses complaint against Overstock.comSALT LAKE CITY, Sept. 21, 2021 (GLOBE NEWSWIRE) -- On September 20, 2021, the United States District Court for the District of Utah ruled in favor of Overstock.com, Inc. (NASDAQ:OSTK), a leading e-com
Decision dismisses complaint against Overstock.comSALT LAKE CITY, Sept. 21, 2021 (GLOBE NEWSWIRE) -- On September 20, 2021, the United States District Court for the District of Utah ruled in favor of Overstock.com, Inc. (NASDAQ:OSTK), a leading e-com
Decision dismisses complaint against Overstock.comSALT LAKE CITY, Sept. 21, 2021 (GLOBE NEWSWIRE) -- On September 20, 2021, the United States District Court for the District of Utah ruled in favor of Overstock.com, Inc. (NASDAQ:OSTK), a leading e-com
finance.yahoo.com
drobx
3 years ago
new digital security on tzero
I received an email notification today that a new security has been added. It has been a very long time coming. It seems like over a year ago they said that they had a lot of new securities coming, so hopefully this is the first of many.
--------------
Exodus Is Now Available On tZERO!
We are writing to inform you that a new digital security has been added to the tZERO Markets platform. EXOD (Exodus Movement, Inc.) will begin trading at 9:30am ET today, Tuesday, September 14, 2021.
What is Exodus?
Founded in 2015, Exodus is a Delaware corporation that has developed a non-custodial cryptocurrency software platform. It has grown to serve over two million users through its non-custodial, multi-asset software wallet where users can securely manage and exchange cryptocurrencies.
What is the EXOD digital security?
Exodus closed its Regulation A+ Public Offering on May 5, 2021. The company issued 2,733,229 shares of its Class A common stock and raised $75 million in gross proceeds. EXOD digital securities are digital representations of Exodus shares.
The digital security, EXOD - Exodus Movement, Inc., and the risk and disclosures associated with the token can be found on the EXOD digital security page in the tZERO Markets portal (https://www.tzero.com/asset/EXOD).
Please read the risk and disclosures provided by the issuer carefully before investing. This is not an offer to buy or sell securities and any transaction is made at your sole discretion.
asr1
4 years ago
Overstock Announces First Quarter 2021 Financial Results
6:00 AM ET 4/29/21 | GlobeNewswire
Overstock Announces First Quarter 2021 Financial Results
First quarter net revenue growth of 94% year over year to $660 million
First quarter income from continuing operations of $26 million, an increase of $40 million year over year
SALT LAKE CITY, April 29, 2021 (GLOBE NEWSWIRE) -- Overstock.com, Inc. (NASDAQ:OSTK) today reported financial results for the quarter ended March 31, 2021.
First Quarter 2021 Financial Highlights, from continuing operations
-- Total net revenue was $660 million, an increase of
94% year over year
-- Gross profit was $154 million or 23.3% of total net
revenue, an increase of 141 basis points year over
year
-- Income from continuing operations was $26 million,
an improvement of $40 million year over year
-- Diluted earnings per share was $0.56, an improvement
of $0.90 year over year
-- Adjusted EBITDA (non-GAAP) was $34 million, an improvement
of $40 million year over year
-- YTD net cash provided by operating activities was
$74 million, an improvement of $76 million year over
year
-- YTD free cash flow (non-GAAP) improved $76 million
year over year
-- At the end of the first quarter, cash and cash equivalents
totaled $535 million
"On the heels of a record 2020, Overstock continues to execute consistently and delivered strong results for the first quarter of 2021," said Overstock CEO Jonathan Johnson. "Our strong momentum reflects our purposeful and strategic focus on our home business and the operational changes we've made and continue to put in place. For the first quarter, our net revenue increased by 94%, and our active customers nearly doubled again. Our focus on improving the customer experience and making our brand vision of 'Dream Homes for All' a reality is paying off. In addition, our strategic partnership with Pelion Venture Partners for oversight of Medici Ventures' blockchain assets closed ahead of schedule and we believe it will provide the portfolio companies the opportunities they need to succeed. We have had another great quarter of profitable market share growth! We believe Overstock is well positioned to sustain this profitable path through 2021 and beyond. I look forward to providing a full update on our first quarter performance during our earnings call."
First Quarter 2021 Operational Highlights
-- Active customers reac
asr1
4 years ago
DJ Overstock Could Be an Acquisition Target, Says Analyst -- Barrons.com
12:17 PM ET 4/9/21 | Dow Jones
Teresa Rivas
The pandemic was a boon for online home-furnishings retailer Overstock.com, and its shares have soared well over 800% in the latest 12 months. Yet Piper Sandler argues that even with that rally, it's the "most mispriced stock" in the space, especially if Overstock becomes an acquisition target.
Analyst Peter Keith reiterated an Overweight rating and $140 price target on Overstock (ticker: OSTK) stock Friday, writing that he sees "tremendous" potential reward for investors over a one- to two-year time frame.
There's a lot to like about its "solidly profitable" business, which trades at just 0.8 times his 2021 sales estimate -- cheaply enough that investors are basically getting its blockchain operations and its contract with the federal government's General Services Administration (GSA) for free, he argues. That's a serious disconnect, as he thinks Overstock's tZero blockchain trading platform could be worth half a billion dollars or more.
Keith's main focus is the GSA contract, however: Awarded in June 2020, it means Overstock provides business-to-business e-commerce capabilities for things such as office furniture and supplies for federal agencies for up to three years. He notes that the contract was originally for five federal agencies that would spend $6 billion in annual purchases, but it's been expanded to encompass eight agencies, implying potentially higher sales. While the platform has been slower to take off than the company expected, he believes much of this is due to ongoing work-from-home dynamics.
He also thinks it's worth noting that Overstock won the contract along with two other, much-larger providers -- Amazon.com (AMZN) and Thermo Fisher Scientific (TMO). Keith believes Overstock was selected because of the products offered, competitive pricing, and its security, reporting, and analytics capabilities. "Overstock was told by the GSA diligence committee that it had best-in-class security among the applicant pool. Overstock also has superior reporting analytics capabilities to provide reporting down to the micro level," he notes.
Ultimately, Keith doesn't just think that the government contract is a great sales opportunity, but it also "validates Overstock as a strong e-commerce platform and makes Overstock an acquisition candidate for other large box retailers that presumably weren't selected as GSA contract finalists."
Overstock stock is up 4.6% to $68.78 in recent trading. The shares are more than 40% year to date.
Write to Teresa Rivas at teresa.rivas@barrons.com
drobx
4 years ago
JP Morgan crypto basket includes OSTK.
JPMorgan structured note to offer clients crypto exposure
Mar. 09, 2021 4:03 PM ETJPMorgan Chase & Co. (JPM)By: Stephen Alpher, SA News Editor102 Comments
The Bank of Dimon (NYSE:JPM) for the first time has mentioned the word "Bitcoin" in an SEC filing, according to MacroScope.
The mention comes in a prospectus for the JPMorgan Cryptocurrency Exposure Basket, a structured note that won't be investing directly in cryptos, but instead in related companies.
Microstrategy (NASDAQ:MSTR) will be the largest holding at 20%, with Square (NYSE:SQ) at 18%, Riot Blockchain (NASDAQ:RIOT) and Nvidia (NASDAQ:NVDA) at 15%, PayPal (NASDAQ:PYPL) at 10%, and AMD (NASDAQ:AMD), Taiwan Semi (NYSE:TSM), Intercontinental Exchange (NYSE:ICE), CME Group (NASDAQ:CME), Overstock (NASDAQ:OSTK), and Silvergate Capital (NYSE:SI) each making up 5% or less.
The note will pay out in May 2022 based on performance, minus, of course, a 1.5% fee.
Yesterday, Bitcoin saw its first investment (that we're aware of) from a publicly-traded Scandinavian firm, when industrial conglomerate Aker announced the purchase of 1,170 coins.
https://seekingalpha.com/news/3670886-jpmorgan-structured-note-to-offer-clients-crypto-exposure
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