Activists take aim at Bed Bath and Beyond, shares surge in pre-market trading

Bed Bath and Beyond shares soared ahead of the opening bell on Wall Street after news that activist investors were trying to oust the retailer's entire board.

Three activist funds have banded together to replace Bed Bath and Beyond's entire 12-person board as concerns that the New Jersey-based outfit was unable to effectively adapt to the rise of e-commerce continued to do the rounds, according to the Wall Street Journal.

Legion Partners Asset Management, Macellum Advisors and Ancora Advisors, which together control a combined 5% stake in Bed Bath and Beyond, are looking to switch out chief executive Steven Temares and have lined up 16 potential directors to replace the remaining board members, including former Gap executive Jeff Kirwan.

The activists want Bed Bath and Beyond, known for its large brick-and-mortar locations filled with bedding, towels, kitchen trinkets and other home goods, to better manage its product range by focusing more on its core business.

Bed Bath and Beyond's sharp share price movement ahead of the open has also set up the stock for its best single-day performance since April 2009.

As of 1240 GMT, Bed Bath and Beyond shares were trading 23.72% higher in pre-market trading at $17.16 each.