Bed Bath and Beyond has named a new CEO. The stock is selling fast

New York
CNN business

Bed Bath and Beyond has named a new CEO, and investors are selling off the stock sharply.

The grocer has replaced interim leader Sue Gove for good. He has been in the role for the past four months following the departure of former CEO Mark Tritton, who failed to turn the company around.

The retailer’s shares fell 8% after the announcement, after rallying 24% on Tuesday. Shares are down about 64% for the year, adding to the retailer’s many woes.

As for Gove’s future at Bed Bath and Beyond, the company said it will continue to “execute the strategic plan” announced in August and prioritize “strengthening its financial position, increasing customer engagement, driving traffic and regaining market share”.

In August, Bed Bath and Beyond laid off roughly 20 percent of the company’s workforce, announced the closing of about 150 stores and scaled back several brands of home products. Crucially, it secured more than $500 million in financing to fix its financial situation.

It also revealed that sales at stores open for at least a year fell 26% in the most recent quarter that ended Aug. 27. The company also lost $366 million in the period and profits fell as the chain discounted merchandise to clear shelves.

Neil Saunders, managing director of GlobalData, said the appointment of Gove was a “sensible and pragmatic solution” because of his knowledge of Bed Bath and Beyond.

“At this point, consistency and a firm hand are far more important than getting another CEO who wants to shake things up with a stick or start implementing new plans,” Saunders wrote in a statement.

“In any case, our view is that Bed Bath and Beyond would have difficulty hiring someone from the outside, both because of the extreme challenges it faces and the doubts about its long-term viability,” he added.