Chewy co-founder Cohen said to hire proxy adviser for potential Bed Bath fight

Chewy co-founder and Gamestop Chairman Ryan Cohen’s RC Ventures LLC is said to have a hired a proxy solicitor for a potential proxy fight with retailer Bed Bath & Beyond (NASDAQ:BBBY).

Cohen’s RC Ventures, which disclosed a nearly 10% stake in BBBY on Monday, hired Harkins Kovler, a proxy solicitor that often works with billionaire activist Carl Icahn, according a Reuters report. A source familiar confirmed to Seeking Alpha that the Reuters report was accurate.

While Cohen seemed to be threatening a potential proxy fight with a filing on Monday, hiring a proxy solicitor may be an indication that he be more seriously considering a battle. Cohen wrote in letter to the board that while he is not in a position to join BBBY’s board given he’s position as Chairman of Gamestop, he doesn’t rule out RC Ventures seeking “to hold the board and management accountable if necessary.”

Cohen, who co-founded pet food company Chewy and is also Chairman of so-called “meme stock” Gamestop (NYSE:GME), is urging the retailer to explore alternatives, including a full sale or separating the buybuy Baby business. Cohen arguds that buybuy Baby could be worth several billions dollars as a separate company. BBBY shares surged 34% on the news on Monday, while they are down 4.

BBBY confirmed on Monday that it has received the letter from RC Ventures and would review it.

BBBY has short interest of 26%.

Recall June, Chewy co-founder Ryan Cohen to become GameStop’s Chairman.