Bed Bath & Beyond parent company names interim CFO; calls off another acquisition
Neighborhood Intelligence has made a change in its C-suite and, in other news, said it plans to focus on organic growth as opposed to growth through acquisitions.
The company formerly known as Bed Bath & Beyond Inc. has appointed Paul Kosturos, a managing director with Alvarez & Marsal, as interim CFO. He succeeds Brian LaRose who will depart the company. LaRose served as CFO of The Container Store through the completion of its acquisition by Neighborhood Intelligence.
In other developments, the company has called off its acquisition of real estate services platform Fathom Holdings, with the boards of both companies concluding that the deal “at current valuations would not appropriately reflect the fair value of either company for its “shareholders.” In September, Neighborhood Intelligence called off its deal to acquire F9 Brands Inc., parent company of Lumber Liquidators, Cabinets To Go and other brands.
Neighborhood Intelligence said that, at this time, it does not expect to pursue additional acquisitions. Instead, it intends to prioritize execution, integration and organic growth across its existing businesses. The focus on organic growth is a change in strategy for the company, which has spent the past year buying up other firms to grow its portfolio, both in and outside of traditional retail.
Interim CFO Kosturos joins a recently strengthened finance organization that includes Jill Windrum, chief accounting officer and deputy CFO, and Emma Haugh, retail CFO. Neighborhood Intelligence has also expanded its strategic relationship with A&M to provide specialized expertise across finance and accounting, technology consolidation and organizational structure.
“Our focus is to simplify the business, flatten the organization and remove unnecessary costs while continuing to grow revenue and expand margin,” said Marcus Lemonis, CEO. “We have made meaningful progress, and we are assembling the right team and expertise to continue that work.”
Year to date, the combined companies have removed more than $50 million of SG&A as each business has taken steps to improve its individual cost structure. Neighborhood Intelligence has identified at least an additional $30 million of savings opportunities through contract consolidation and renegotiation, technology consolidation, organizational simplification and the elimination of unnecessary duplication.
“We have spent the quarter taking deliberate actions to position the business for profitable growth,” said Amy Sullivan, president of Neighborhood Intelligence. “We are improving inventory, supply chain and productivity while removing unnecessary expense and complexity. The assessment work is largely behind us; our focus now is execution.”
The Neighborhood Intelligence portfolio includes Bed Bath & Beyond, Overstock, BuyBuy Baby, Kirkland’s, The Container Store, Elfa and Closet Works, along with its Home Services and Home Ownership businesses.
