Embattled retailer Bed Bath & Beyond needs to maneuver quickly to shore up its executive ranks after the sudden death of its chief financial officer, an authority told The Post on Monday.
Gustavo Arnal jumped to his death from the 18th floor of his luxury Manhattan apartment constructing early Saturday. The 52-year-old executive recently announced the corporate secured a $500 million financing deal to assist it restructure while addressing declining sales.
“The corporate is in crisis,” bankruptcy attorney Eric Snyder of Wilk Auslander told The Post on Monday. “Now that there’s a emptiness for the CFO, the logical next step is to usher in a restructuring officer to either restructure the corporate with the creditor groups or sell the corporate through an organized bankruptcy process.”
The retailer, which is attempting to stave off bankruptcy, is predicted to call Arnal’s successor before the markets open on Tuesday, in keeping with a Wall Street Journal report, amid a leadership vacuum and potentially damaging litigation.
The C suite has seen an exodus after losing its chief executive, Mark Tritton, and its chief merchandising officer, Joe Hartsig, on June 29. Last week, Chief Operating Officer John Hartmann stepped down.
Gustavo Arnal recently announced BB&B secured a $500 financing deal to assist it restructure while addressing declining sales
Arnal, 52, leaped to his death from his 18th-floor apartment in lower Manhattan.Robert Miller
Individually, Arnal was named in an Aug. 23 insider trading lawsuit against the corporate alleging that he misled investors. The criticism, filed in federal court in Washington, D.C., also named activist investor Ryan Cohen, who dumped his shares within the retailer last month to bag $68 million.
The criticism alleges that “disclosures made by certain of our investors about their holdings…were materially false or misleading,” the corporate said in a securities filing.
Bed Bath & Beyond is facing an ideal storm of declining sales, a leadership crisis and creditor anxieties.Getty Images
Bed Bath & Beyond said it’s in “early stages of evaluating the criticism” but believes that the “claims are without merit.”