Amid Massive Changes, Bed Bath & Beyond Ousts Veteran General Counsel Allan Rauch
The longtime chief legal officer and general counsel was one of six senior executives ousted at Bed Bath & Beyond Inc. on Tuesday. He had been at the company 25 years.
December 17, 2019 at 04:15 PM
3 minute read
Longtime chief legal officer and general counsel Allan Rauch was one of six senior executives ousted at Bed Bath & Beyond Inc. on Tuesday. He had been at the company 25 years, all but the first two as general counsel.
The company said Rauch, 60, will be replaced on an interim basis by Michael Callahan, while it searches for a permanent general counsel.
According to his LinkedIn profile, Callahan started his own one-man law firm in January, when he left Bed Bath & Beyond's in-house legal department after 25 years on the job. He served as the company's vice president, corporate counsel and regional director of real estate.
A company spokesperson turned down a Corporate Counsel request to interview Rauch or Callahan on Tuesday, saying the company was not offering interviews at this time. The home products retailer is headquartered in Union, New Jersey.
The massive leadership changes, according to the company's statement, were a "bold pivot [that] reflects the priorities of new president and CEO Mark Tritton, who will launch his new vision for the company in early 2020."
Also departing are the chief merchandising officer, chief marketing officer, chief digital officer and chief administrative officer. A sixth company leader, the chief brand officer, resigned last week.
In the statement, Tritton said, "This is the first in a number of important steps we're taking. Balancing our existing expertise with fresh perspectives from new, innovative leaders of change, will help us to better anticipate and support our customers in their life journeys and shopping needs."
He added, "As we look to the future, I would like to thank all those leaving today for their work and commitment to our business over many years."
The upheaval at Bed Bath & Beyond has been going on since May when the company settled a lawsuit brought by a group of activist hedge fund investors. That month, longtime CEO and former general counsel Steven Temares resigned under pressure, the company's co-founders retired, and most of the directors were replaced.
The investor group's new directors named an interim CEO until Tritton was brought in last month. He wasted no time cleaning house.
The company employs about 62,000 people in 1,500 stores in the United States and Canada.
It admitted in its 2019 proxy statement earlier this year that it faces challenges, including "the upheaval in the traditional retail sector, shifting supply chain dynamics, rapidly changing opportunities created by technology, and the expenses incurred to operate as an omni-channel retailer."
Rauch was hired by then-general counsel Temares in 1994 as a real estate counsel. He was promoted to general counsel in 1996 and led several acquisitions that helped the company grow.
Prior to that, Rauch had been an associate at Schulte Roth & Zabel for nine years in Manhattan. He was a graduate of the University of Pennsylvania School of Law.
In 2016 Rauch received the GC Impact Award from Corporate Counsel affiliate New Jersey Law Journal.
"Allan is the consummate professional," then-CEO Temares told the Law Journal. "More importantly, Allan is an incredible person."
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