Bed Bath & Beyond confirmed Sunday that Chief Financial Officer Gustavo Arnal died after falling from his home in New York City’s iconic Jenga Towers. Investigators say they believe his fall was intentional, though he did not leave a note and said nothing to his wife, who was home at the time, prior to the fall.
The company said in a statement, “The entire Bed Bath & Beyond Inc. organization is profoundly saddened by this shocking loss.”
NYC EMS declared Arnal dead at the scene, according to a spokesperson from New York’s Office of the Deputy Commissioner. The investigation remains ongoing.
Arnal joined the company in 2020, just after the start of the Covid-19 pandemic, following a stint at London-based cosmetics company Avon. Prior to that he spent 20 years at Proctor and Gamble. Bed Bath & Beyond noted in a statement that Arnal, “was instrumental in guiding the organization throughout the coronavirus pandemic.”
According to a filing, Arnal had made several purchases and sales of the company’s stock since he joined the firm. He had sold 55,000 shares at prices between $20 and $29.95 per share, for a total sum of $1.23 million. The filing also showed he still held 255,396 shares.
Arnal’s death came just days after the company announced its restructuring plan, which was to see about 150 of its lowest producing stores shuttered, and 20% of its staff laid off. It also announced it had secured an additional $500 million in new financing, giving it about $1 billion in cash on hand.
The restructuring plan comes as the company’s sales continue to slump. On Wednesday, the company revealed same-store sales were dropping 26% for the three month window ending August 27th. It was an even bigger drop than had been seen in previous quarters. Bed Bath’s stock has already dropped 43% this year, and it is down roughly 90% from its all time high.
Analysts have generally agreed that while the turnaround plan announced by the company will improve its liquidity position, it will not save the company. One declared that a Chapter 11 bankruptcy was already essentially a “fait acompli,” and said he assumed the papers had already been drawn up. Raymond James, after downgrading the stock, said the financing and cost cuts “only kicks the can down the road.”
Bed Bath has become a “meme stock” recently, where high social media interest and hype triggers wide price swings, with the stock moving over 20% multiple days in August. Activist investor Ryan Cohen a major shareholder who had encouraged investment in the stock with repeated optimistic statements, exited his position in full in mid-August at prices between $18.68 per share and $29.22 per share. As word came out of his exit after the fact, the stock dropped 40%.
The company also faced a lawsuit filed in the District of Columbia recently, accusing it of fraud by misrepresenting its profitability and value. Arnal was one party named in the suit, as Chief Financial Officer. It is not known if that might have served in part as a motive for him to commit suicide, but more may be revealed, if discovery in the trial were to show any signs of financial impropriety in the company.
If you are having suicidal thoughts, contact the Suicide & Crisis Lifeline at 988 to speak with a trained counselor.
