Former Bed Bath & Beyond CEO Mark Tritton has filed a lawsuit against the company, accusing it of failing to honor his $6.765 million severance agreement. Tritton was ousted as CEO in June, following missed earnings and the company's decision to focus on reversing recent results, addressing supply chain and inventory issues, and strengthening its balance sheet.
The lawsuit claims that Bed Bath & Beyond stopped making required bi-monthly payments towards Tritton's severance in January, with the chief legal officer citing the need to preserve cash as the sole reason.
Tritton also accused the company of acting in "bad faith" by proposing a discounted "buyout" of his severance, contingent on improved performance, even as it resumed paying severance to some former employees. Bed Bath & Beyond has not yet responded to requests for comment on the matter.
The company has faced several challenges recently, including the shocking suicide of former CFO Gustavo Arnal, who was named in an insider trading lawsuit less than two weeks before his death. The lawsuit alleges that Arnal, along with GameStop Chairman Ryan Cohen, conspired to inflate Bed Bath & Beyond's stock for profit.
The company is currently trying to turn around its business after taking on too much debt, being slow to embrace online sales, and alienating consumers by de-emphasizing brand-name products. Bed Bath & Beyond is closing hundreds of stores and has announced plans to sell up to $300 million of stock.
