UNION, N.J., Jan. 6, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) announced today that it has completed a
sale-leaseback transaction with an affiliate of Oak Street Real
Estate Capital, generating over $250
million in net proceeds.
"We are pleased to complete this sale-leaseback transaction,"
said Mark Tritton, Bed Bath &
Beyond's President & Chief Executive Officer. "This marks the
first step toward unlocking valuable capital in our business that
can be put to work to amplify our plans to build a stronger, more
efficient foundation to support revenue growth, financial stability
and enhance shareholder value."
The properties sold represent approximately 2.1 million square
feet of commercial space, including retail stores, a distribution
facility and office space. Bed Bath & Beyond will continue to
occupy these properties pursuant to long-term leases.
As previously announced, Bed Bath & Beyond, together with
its outside financial advisors, is reviewing its portfolio of
retail concepts and owned real estate to optimize its asset base
and enhance shareholder value. In connection with this review, the
Company continues to evaluate certain remaining owned real
estate.
The proceeds from this transaction may be used to reinvest in
the Company's core business operations/ongoing business
transformation efforts to drive growth, fund share repurchases,
reduce the Company's outstanding debt, or some combination of these
options.
About the Company
Bed Bath & Beyond Inc. and subsidiaries (the "Company") is
an omnichannel retailer that is the trusted expert for the home and
heart-felt life events. The Company sells a wide assortment of
domestics merchandise and home furnishings. The Company also
provides a variety of textile products, amenities and other goods
to institutional customers in the hospitality, cruise line,
healthcare and other industries. Additionally, the Company is a
partner in a joint venture which operates retail stores in
Mexico under the name Bed Bath
& Beyond.
Forward-Looking Statements
This press release contains forward-looking statements,
including, but not limited to, the Company's progress and
anticipated progress towards its long-term objectives. Many
of these forward-looking statements can be identified by use of
words such as may, will, expect, anticipate, approximate, estimate,
assume, continue, model, project, plan, goal, and similar words and
phrases. The Company's actual results and future financial
condition may differ materially from those expressed in any such
forward-looking statements as a result of many factors. Such
factors include, without limitation: general economic conditions
including the housing market, a challenging overall macroeconomic
environment and related changes in the retailing environment;
consumer preferences, spending habits and adoption of new
technologies; demographics and other macroeconomic factors that may
impact the level of spending for the types of merchandise sold by
the Company; civil disturbances and terrorist acts; unusual weather
patterns and natural disasters; competition from existing and
potential competitors across all channels; pricing pressures;
liquidity; the ability to achieve anticipated cost savings, and to
not exceed anticipated costs, associated with organizational
changes and investments; the ability to attract and retain
qualified employees in all areas of the organization; the cost of
labor, merchandise and other costs and expenses; potential supply
chain disruption due to trade restrictions, political instability,
labor disturbances, product recalls, financial or operational
instability of suppliers or carriers, and other items; the ability
to find suitable locations at acceptable occupancy costs and other
terms to support the Company's plans for new stores; the ability to
establish and profitably maintain the appropriate mix of digital
and physical presence in the markets it serves; the ability to
assess and implement technologies in support of the Company's
development of its omnichannel capabilities; uncertainty in
financial markets; volatility in the price of the Company's common
stock and its effect, and the effect of other factors, on the
Company's capital allocation strategy; risks associated with the
ability to achieve a successful outcome for its business concepts
and to otherwise achieve its business strategies; the impact of
intangible asset and other impairments; disruptions to the
Company's information technology systems including but not limited
to security breaches of systems protecting consumer and employee
information or other types of cybercrimes or cybersecurity attacks;
reputational risk arising from challenges to the Company's or a
third party product or service supplier's compliance with various
laws, regulations or standards, including those related to labor,
health, safety, privacy or the environment; reputational risk
arising from third-party merchandise or service vendor performance
in direct home delivery or assembly of product for customers;
changes to statutory, regulatory and legal requirements, including
without limitation proposed changes affecting international trade;
changes to, or new, tax laws or interpretation of existing tax
laws; new, or developments in existing, litigation, claims or
assessments; changes to, or new, accounting standards; foreign
currency exchange rate fluctuations; and the integration of
acquired businesses. The Company does not undertake any obligation
to update its forward-looking statements.
CONTACTS:
INVESTOR CONTACT: Janet M. Barth,
(908) 613-5820 OR IR@bedbath.com
MEDIA CONTACT: Dominic Pendry,
(908) 855-4202 or dominic.pendry@bedbath.com; Allison McLarty, (646) 270-6797 or
BBBY@edelman.com
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SOURCE Bed Bath & Beyond Inc.