Bed, Bath & Beyond to sell Christmas Tree Shops, other brands
The company will continue to invest in its digital business
FOX Business' Ashley Webster reports on the new Bed Bath & Beyond CEO saying the company will spend $400 million on remodeling the stores to widen the aisles, lessen the number of items it carries.
Bed Bath & Beyond Inc. disclosed Tuesday that it will be shedding some of its brands, including the Christmas Tree Shops, in an effort to "further increase its financial strength" amid the coronavirus-related economic downturn.
BED BATH & BEYOND TO CLOSE OVER 200 STORES AMID CORONAVIRUS
The company entered into a purchasing agreement with Handil Holdings, LLC, which will oversee all 80 brick-and-mortar Christmas Tree Shop locations and a Middleborough, Mass., distribution center once the transition is complete.
Handil plans to continue operating Christmas Tree Shops as a stand-alone retail brand, the company said. The transaction with Handil is expected to close next month, although that date is subject to customary closing conditions.
BED, BATH & BEYOND TO CUT 2,800 JOBS
Under two other agreements, the company's Linen Holdings business will be sold to The Linen Group, LLC, and its Florence, N.J., distribution center to an "institutional buyer," the company announced.
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Overall, the company expects to generate roughly $250 million in revenue after selling off all three "non-core assets."
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"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 Mark Tritton said in a statement.
Tritton also noted that in optimizing its portfolio, the company will continue to invest in its digital business.