Bed Bath & Beyond Inc. said it has agreed to sell its Christmas Tree Shops chain, its Linen Holdings business and a Florence distribution center in separate deals, making about $250 million in the process.
The Union-based retailer, which is transforming itself in the wake of the COVID-19 pandemic, said streamlining its portfolio and assets is intended to increase financial strength and 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,” CEO and President Mark Tritton said in a prepared 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 that makes it easy to feel at home with Bed Bath & Beyond.”
Details of the various transactions are as follows — separate financial terms were not disclosed:
- Bed Bath will sell Christmas Tree Shops to Handil Holdings LLC, in a deal that includes all 80 brick-and-mortar stores and a Massachusetts distribution center. Handil plans to operate the company as a standalone retail brand. The transaction is expected to close in November, subject to customary approvals and conditions.
- It will sell its Linen Holdings business to the Linen Group LLC, an affiliate of Lion Equity Partners. The business will be merged with Riegel Linen, an existing Lion Equity portfolio company. The sale is expected to close in October, subject to customary approvals and conditions.
- And it will sell the Florence distribution center to an institutional buyer as part of its review of real estate assets, signing a lease agreement to continue operations during a transition period. The sale is expected to close in October, also subject to customary conditions.
