Former Bed Bath & Beyond CEO Mark Tritton has filed a lawsuit against the struggling retailer, accusing them of cutting off bi-monthly payments of his $6.76 million severance agreement in January.

‍
According to a 13-page complaint filed with the Supreme Court of the State of New York, Tritton is accusing the company of breach of contract for failing to continue the payments following his departure from the company on June 23, 2022.

‍
The court document states that Bed Bath & Beyond’s chief legal officer, David Kastin, acknowledged the company stopped paying Tritton in order to preserve its cash reserves. The company has been struggling financially in recent months, warning just last week that it could not rule out needing bankruptcy protection if its latest attempt to raise $300 million in the stock market fails.

‍
Tritton claims that the company offered to buy out his severance “for a sum lower than the contractually agreed amount — if the company’s performance improves,” despite the resumption of severance payments to some employees.

‍
Tritton sent a March 13 letter to the company demanding the past due severance payments after the retailer announced that it had received further funding, however, the company didn't respond, according to court documents.

‍
In a statement to Retail Dive regarding the lawsuit, Bed Bath & Beyond said, “As is our practice, we do not comment on legal matters.” Tritton’s attorneys didn’t immediately respond to Retail Dive’s request for further comment.

‍
Tritton began serving as Bed Bath & Beyond’s CEO in November 2019, following his time at Target where he successfully re-envisioned its private label strategy. Under the employment contract with the company, Tritton agreed to serve as the company’s president and CEO for three years, with an automatic one-year extension unless either party terminated the agreement in writing.

‍
Cristina Fernández, managing director and senior research analyst with Telsey Advisory Group, told Retail Dive in an email that Bed Bath & Beyond’s troubles have accelerated in the last year.

‍
Sources: https://www.retaildive.com/news/former-bed-bath-beyond-ceo-sues-over-unpaid-severance/646658/