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.