Bed Bath & Beyond shares are down sharply after CFO jumps to his death
By Jordan Valinsky, CNN Business
Shares of Bed Bath & Beyond is down nearly 20% in midday trading following the death of its one its top executives.
Gustavo Arnal, the chief financial officer of the beleaguered retailer, jumped to his death from a high-rise apartment in Manhattan on Friday afternoon, a law enforcement source previously told CNN. The NYPD said in a statement Sunday that Arnal, 52, was found unconscious and unresponsive outside his luxury 57-story skyscraper in the neighborhood of Tribeca.
The law enforcement source told CNN on Sunday that Arnal’s wife witnessed him jump. The source said while no suicide note was found, no criminality is suspected.
Bed Bath & Beyond is “profoundly saddened by this shocking loss”, a company spokesperson said. In a statement Sunday, the Independent Chair of Bed Bath & Beyond’s Board of Directors Harriet Edelman said, “I wish to extend our sincerest condolences to Gustavo’s family.”
“Our focus is on supporting his family and his team and our thoughts are with them during this sad and difficult time. Please join us in respecting the family’s privacy,” Edelman said. Arnal joined Bed Bath & Beyond in May 2020 following a career in finance at Avon, Walgreens Boots Alliance and Procter & Gamble.
Arnal was named as a defendant in a class action lawsuit accusing him, Ryan Cohen and other large shareholders of engaging in a “pump and dump” scheme to artificially inflate the price of the company’s stock. The lawsuit was filed last month in United States District Court for the District of Columbia.
The lawsuit claims that Arnal and others made misleading statements and omissions when communicating to investors regarding the company’s strategic plans and financial condition, and delayed disclosures about holding and selling their own shares. The suit also alleges the stakeholders shared fake revenue numbers and company plans for spinning off its “Buy Buy Baby” brand to fuel a stock buying frenzy.
Bed Bath & Beyond is in deep financial turmoil. The company is trying to rescue itself and stay out of bankruptcy by shrinking. The chain said last week that it will lay off approximately 20% of corporate employees, close around 150 stores and slash several of its in-house home goods brands. The company also said it secured more than $500 million in financing to shore up its ailing financial straits.
On Tuesday, the company named Laura Crossen, its senior vice president of finance, as its interim CFO, and she will continue her role as its principal accounting officer.
If you or someone you know is struggling with suicidal thoughts or mental health matters, please call the National Suicide Prevention Lifeline at 988 to connect with a trained counselor or visit the NSPL site.
–CNN’s Brynn Gingras, Liam Reilly, Ramishah Maruf and Samantha Beech contributed to this report.
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