Bed Bath & Beyond has entered into separate agreements to sell its Christmas Tree Shops retail banner, its institutional Linen Holdings business and a distribution center located in Florence, N.J. The company expects to generate a total of approximately $250 million in aggregate from the monetization of these assets as it continues to optimize its portfolio, potentially including the sale of additional non-core assets, as it seeks to further increase its financial strength and enhance shareholder value.
“Today’s announcement builds on the purposeful steps we have made throughout the year to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the home, baby, beauty and wellness markets,” said Mark Tritton, President and CEO of Bed Bath & Beyond in a statement. “Customers are responding well to the introduction of our new omni-always services, and we will continue to invest in our digital-first experience with a customer-inspired assortment.”
Bed Bath & Beyond has entered into a definitive agreement to sell Christmas Tree Shops to Handil Holdings. The purchase agreement includes all 80 brick-and-mortar Christmas Tree Shop locations and a distribution center in Middleborough, Mass. Handil Holdings plans to continue operating Christmas Tree Shops as a standalone retail brand.
The company also has entered into a definitive agreement to sell its Linen Holdings business to The Linen Group, an affiliate of Lion Equity Partners. Linen Holdings will be merged with Riegel Linen, an existing Lion Equity portfolio company.
Additionally, Bed Bath & Beyond has agreed to sell its distribution center in Florence, N.J. to an institutional buyer. The sale continues the retailer’s strategic program of streamlining and modernizing its distribution and omni-fulfillment capabilities as part of an ongoing review of real estate assets.