UNION, N.J., Oct. 13, 2020 /PRNewswire/ -- Bed Bath &
Beyond Inc. (Nasdaq: BBBY) today announced that it 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, NJ. 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, to further increase its
financial strength and enhance shareholder value.
Mark Tritton, President and Chief
Executive Officer said, "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. 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."
Bed Bath & Beyond has entered into a definitive agreement to
sell Christmas Tree Shops to Handil Holdings, LLC. The
purchase agreement includes all 80 brick-and-mortar Christmas Tree
Shop locations and a Middleborough, MA distribution center. Handil
Holdings, LLC expects to continue operating Christmas Tree Shops as
a stand-alone retail brand. The companies have agreed to a
transition service agreement, following the close of the
transaction, to help ensure business continuity, particularly
during the upcoming holiday season. The transaction is expected to
close in November 2020, subject to
customary closing conditions.
The Company has also entered into a definitive agreement to sell
its Linen Holdings business to The Linen Group, LLC, an affiliate
of Lion Equity Partners. Linen Holdings will be merged with
Riegel Linen, an existing Lion
Equity portfolio company. Linen Holdings provides a broad
selection of quality linen, terry, amenities, case goods and
apparel to world-class businesses in the global hospitality and
healthcare industries. The sale of Linen Holdings is expected to
close in October 2020, subject to
customary closing conditions.
Additionally, Bed Bath & Beyond has agreed to sell its
distribution center in Florence,
NJ to an institutional buyer. The sale continues the
Company's strategic program to streamline and modernize its
distribution and omni-fulfillment capabilities as part of an
ongoing review of real estate assets. Bed Bath & Beyond
has signed a lease agreement with the buyer to continue operations
and provide business continuity during a transition period. The
Florence distribution center sale
is expected to close in October 2020,
subject to customary closing conditions.
About the Company
Bed Bath & Beyond
Inc. and subsidiaries (the "Company") is an omnichannel retailer
that makes it easy for our customers to feel at home. The Company
sells a wide assortment of merchandise in the Home, Baby, Beauty
and Wellness markets. 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, plans with respect to potential asset sales,
as well as more generally the status of its future liquidity and
financial condition. 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, although the
absence of those words does not necessarily mean that statements
are not forward-looking. 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; risks associated with COVID-19 and the governmental
responses to it, including its impacts across the Company's
businesses on demand and operations, as well as on the operations
of the Company's suppliers and other business partners, and the
effectiveness of the Company's actions taken in response to these
risks; 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, including the Company's strategic
restructuring program; 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, and other factors such as
natural disasters, pandemics, including the COVID-19 pandemic,
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; the
ability to effectively and timely adjust the Company's plans in the
face of the rapidly changing retail and economic environment,
including in response to the COVID-19 pandemic; uncertainty in
financial markets; volatility in the price of the Company's common
stock and its effect, and the effect of other factors, including
the COVID-19 pandemic, 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 other factors summarized in the
Company's reports filed with the U.S. Securities and Exchange
Commission. The Company does not undertake any obligation to update
its forward-looking statements.
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SOURCE Bed Bath & Beyond Inc.